MercoPress. South Atlantic News Agency

Portuguese paper maker looking to invest in Uruguay

Portuguese pulp and paper maker Portucel will decide before the end of the year whether it will build a plant in Uruguay, government representatives announced. This would become the fourth pulp mill to be established in Uruguay.

Portucel representatives are in Uruguay "looking at the forestry aspect for sustaining and developing the pulp and paper project," Transportation and Public Works Minister Victor Rossi told reporters. Rossi added Portucel officials will stay in Uruguay to make a decision before the end of the year. The minister said investment in the plant would be 1.5 billion US dollars, but the company has mentioned one billion in the past. Spain's Ence and Swedish-Finnish Stora Enso are also planning pulp mill investments in Uruguay. Finland's Botnia is set to begin production in mid November. Portucel's plant may be located on the Atlantic coast, if a fishing harbor is converted into a deep sea port. Another alternative under consideration is having warehouses near the port of Montevideo, Rossi said. Rossi indicated that Portucel's plant would produce about the same as Botnia's planned 1 million tons of cellulose a year, but would also produce paper. Portucel' other option in the region is Brazil. The Uruguayan minister who recently visited Portugal said that the company works with the highest environmental standards, a risk factor to take into account given the Botnia dispute with Argentina. Rossi also under lined that one of Portucel's plants is located only 12 kilometers from one of Portugal's main seaside resorts. The possible location for an Atlantic port in the east of Uruguay is precisely in an area well known for its beaches, pristine water and excellent fisheries.