The Chilean group Arauco, an affiliate of the pulp and paper Copec Enterprises announced on Thursday that together with its European partner they had subscribed 1.354 billion dollars in loans for the construction of a pulp plant in Uruguay.
Foreign Direct Investment, FDI, in Uruguay was record in 2010 with 2.35 billion dollars (47.8% higher than in 2009) according to the latest report on global investment from the UN Conference on Trade and Development, UNCTAD. FDI represented 30.5% of total gross investment in Uruguay last year.
The construction of Uruguay’s second pulp mill, which includes a power plant and port facilities have been authorized following the approval of the Montes del Plata environment policies.
Chile’s Arauco the forestry and pulp unit belonging to the Copec group, trebled profits in the first quarter boosted by higher international prices and sale volumes particularly pulp, according to the company’s latest financial report.
The scarcity of qualified labour and the increase in costs have become a growing concern for the pulp mill that Chilean and Scandinavian investors are building in Conchillas, Uruguay.
Chilean fuel and forestry conglomerate Empresas Copec SA will invest a record 1.2 billion US dollars this year, company president Roberto Angelini said on Wednesday, according to local newswire Valor Futuro.