Uruguay and the Finnish UPM advance in an agreement for a new paper mill

The Uruguayan government and UPM today signed a contract that establishes the requirements for a potential investment in a pulp mill in the Finnish pulp mill, official sources said.

Montevideo, Nov 7 (EFE) .- The Uruguayan government and UPM today signed a contract that establishes the requirements for a potential investment in a pulp mill in the Finnish pulp mill, Official sources reported.

"The signing of this contract confirms that we are entering the second stage of preparation for this growth opportunity, which is expected to have a Jaramko Sarantola, Vice President of Business Development at UPM in Uruguay, said in a statement from the Finnish firm.

Sarantola, In addition, he emphasizes that this contract "lays the foundations for UPM's planning of a state-of-the-art pulp mill."

"A robust infrastructure is essential for the industrial development ", adds and explains that" the Government of Uruguay affirms its serious determination with this contract and with the agreed timetable ".

Therefore, in the contract signed today, define the functions, commitments and deadlines of both parties, as well as relevant aspects to be agreed upon before the final investment decision.

The document also reveals that the plant It would be "near the city of Paso de los Toros, in the department (province) of Durazno", a town located in the center of the country.

In addition, UPM's statement says that the Government Uruguayan "will develop the rail and road network through a long-term tender for the construction and maintenance of the network."

It also points out that "once if the authorization requirements are met, the government (Uruguayan) will grant a free zone to the factory. "

If the investment is completed, Uruguay will have a third pulp mill in its territory (the second of UPM).

The first plant that installed the Finnish pulp mill in Uruguay, in the city of Fray Bentos, in the department of Río Negro, generated tensions between Uruguay and Argentina during the first Government of Tabaré Vázquez (2005-2010) and their Argentine counterparts Néstor Kirchner first and Cristina Fernández later.

The conflict resulted in a trial in front of the International Court of Justice (ICJ) of The Hague, which in 2010 determined that the plant does not pollute, contrary to what the Argentine authorities claimed, but that the The Uruguayan government did not duly inform the neighboring country, as required by bilateral agreements.