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.
Uruguay’s manufacturing industry expanded 4.5% in 2010, but if the pulp industry hub is excluded the percentage drops to 3.5%, according to the latest release from the National Statistics Institute, INE.
Montes Del Plata, a 50/50 joint venture between Chilean Arauco and Finnish Stora Enso, manufactures cellulose pulp from wood, and has been operating in Uruguay since 2009.
Uruguayan president Jose Mujica was critical of Argentina’s economic policies and of the recent organization for the funeral of former president Nestor Kirchner. He also admitted it would be “difficult” to reach a definitive agreement with Argentina regarding the long standing UPM-Botnia pulp mill conflict.
Pressure is mounting in Argentina for pickets blocking an international bridge leading to Uruguay to be ordered removed by a court order, following Wednesday’ presidential summit when Uruguay’s Jose Mujica and Argentina’s Cristina Fernandez de Kirchner agreed on a joint agenda of pending issues.
An Argentine Supreme Court Judge has said that the pickets blocking an international bridge linking neighbouring Argentina and Uruguay to protest the construction of a pulp mill on the Uruguayan side are “illicit but not illegal”.
Finland’s pulp and paper manufacturer UPM's (OMX: UPM1V) Fray Bentos unit in Uruguay proved overwhelmingly the most profitable, helping to boost an otherwise first quarter profit of the year which was described as “unsatisfactory” by CEO Jussi Pesonen.
Argentine President Cristina Fernández de Kirchner and her Uruguayan counterpart José “Pepe” Mujica said on Wednesday they will be working to “re-channel” bilateral relations and will strictly abide the ruling of the Botnia paper mill case.
Angry protestors from Argentina marched Sunday on to the bridge linking with Uruguay to express their disenchantment with the recent international court judgement on the pulp mill dispute, which confirmed the mill does not pollute and there’s no sufficient evidence for re-location or damages’ compensation as demanded by Argentine environmentalists.
Argentine Foreign Minister Jorge Taiana called on Gualeguaychú activists that keep international San Martín bridge blocked for more than three years to “reconsider their ways of action, mostly after the International Court of Justice ruling”.