On July 23 UPM made public the investment decision to construct a 2,1 million tonne greenfield eucalyptus pulp mill near Paso de los Toros in central Uruguay. The highly competitive mill investment of USD 2,7 billion will grow UPM’s current pulp capacity by more than 50%, resulting in a step change in the scale of UPM’s pulp business as well as in UPM’s future earnings. Additionally, UPM will invest USD 350 million in port operations in Montevideo and local facilities in Paso de los Toros. The mill is scheduled to start up in the second half of 2022.
An enormous investment that will lead to an increase of GDP by 2% plus creation of an estimated 10.000 jobs. And also a new boost to forestry in Uruguay both in plantation and exports. This investment will undoubtedly help to maintain the investment grade that all credit rating agencies have already assigned to Uruguay.