Finland's UPM and the Government of Uruguay have signed an investment agreement, which outlines the local prerequisites for a potential pulp mill investment. The agreement details the roles, commitments and time-line for both parties as well as the relevant items to be agreed prior to the final investment decision, reported the Finnish company in a release on Tuesday.
“Good progress has been made in the discussions between the Government of Uruguay and UPM concerning the infrastructure development and other local prerequisites for long-term industrial growth in Uruguay. We are now in agreement regarding the majority of the key items on the negotiation agenda,” says Jaakko Sarantola, Senior Vice President, UPM, Uruguay Platform.
Talks between Uruguay's government and Finnish pulp and paper maker UPM on a new pulp plant project in the Latin American country are proceeding, Uruguay's president Tabare Vazquez said on Monday.
Uruguayan president Tabare Vazquez, six cabinet ministers and a numerous business delegation begin on Monday a two weeks official tour of Germany, Finland and Russia to increase political and trade links, particularly in the “new international scenario” and hopefully advancing in locking the long delayed accord between the European Union and Mercosur.
UPM states that it is not engaged in negotiations on a pulp mill investment with the Uruguayan government. As earlier announced, the company is considering prospects and prerequisites for long-term development in Uruguay. Currently UPM is engaged in discussions with the Government of Uruguay on infrastructure development.
An Argentine-Uruguayan commission took 50 samples of effluent from the pulp mill off Fray Bentos and as many in the Gualeguaychú mouth of the river in Entre Rios. Botnia passes test. The reports from the samples collected on the Argetine side recorded more polluting than those found off Fray Bentos. The plant's formal name is Orion but is widely known for its original Finnish name Botnia.
Uruguayan president Tabare Vazquez will host on Thursday his Argentine peer Mauricio Macri to address several controversial issues from the bilateral agenda which are pending from the twelve years of the Kirchner couple. According to Uruguayan sources they include trade, River Plate channels and navigation, ports and pulp mills among other issues.
Uruguay's economy expanded 2.4% in the first quarter compared with the same 2013 period, but contracted 0.4% compared with the fourth quarter of last year, the central bank said this week. However deceleration is a fact since growth of the first quarter in 2013 has gone up 4.6% over 2012.
Argentine foreign minister Hector Timerman said that the pulp mill dispute with Uruguay is 'political' and wondered how great is Finland's' Botnia-UPM influence in the country, but at the same time underlined that all chances of dialogue have been 'exhausted'.
The lasted chapter of the resurgent diplomatic conflict between Argentina and Uruguay was not addressed during a brief encounter of presidents Cristina Fernandez and Jose Mujica in Bolivia where they attended the G77 plus China summit over the weekend.