Pulp and Paper

UPM Says "Full Speed Ahead" for USD 3 Billion Pulp Mill Project in Uruguay

Jan. 13, 2020 - UPM on July 23, 2019 announced its decision to build a 2.1 million tonnes per year greenfield eucalyptus pulp mill near Paso de los Toros in central Uruguay. Besides the mill, the total investment of USD 3 billion also includes a pulp terminal in the port of Montevideo as well as investments in local facilities in Paso de los Toros.

In December, UPM published the following update on the progress of construction activities associated with the mill project:

In Uruguay the month of December is generally one of the busiest times in the year. Not just because of the approaching year end, but it's also the last month before the summer holiday season. The last few months have also been very exciting for us — since the investment decision in July we have moved full speed ahead to start preparatory work for our new state-of-the-art pulp mill in Paso de los Toros. In addition to the new mill, this project includes building a pulp terminal at the Montevideo port as well as other related facilities, such as permanent and temporary apartments and houses for construction employees, and infrastructure.

There are currently over 700 people working on the mill site preparation, housing construction in the outskirts of Paso de los Toros as well as on pulp terminal construction and dredging at the port. Half of the workers in Paso de los Toros and Durazno are from the region.

Several Initiatives Ongoing

Besides construction, several initiatives have been started in line with the regional development plan. These include both professional and complementary training, support for entrepreneurship as well as awareness building — for example on road safety.

The government-led Río Negro Initiative aimed at improving the conditions of the Rio Negro river has also established a technical office in Paso de los Toros. UPM is contributing USD 10.5 million to this initiative and improvement of the sanitation system of Paso de los Toros and Pueblo Centenario.

Active engagement

Throughout all this we have continued active communication and engagement with the local community and stakeholders.

In November we opened a new UPM office in Paso de los Toros. This serves as an information point and many people have already visited to learn about the project, UPM in Uruguay and the training and work opportunities that the project will bring as it proceeds.

[During the first week in December] UPM President and CEO Jussi Pesonen visited us here in Uruguay. He, as well as other UPM executives, often visit Uruguay to meet with the local team and stakeholders. This is natural given the importance of our current operations and the investment — USD 3 billion — which is the largest the company has ever made. On this visit Jussi Pesonen also met with the country's newly elected leader Luis Lacalle Pou in Montevideo to greet and congratulate the new President.

On Thursday, 12 December, we held a local information meeting to share progress with everyone in Paso de los Toros. Just like previous information meetings, we had a full house and active participation.

We continue to engage and share information through information meetings and on our project website at www.upm.uy/en/growth as we proceed. Knowing the importance of this project to UPM and my home country, and the positive impact that the Fray Bentos mill continues to have on the local community, it is both humbling and exciting to be part of this investment and share its progress!

 

Investments in Tissue Production in Brazil’s Northeast

The project to serve the sanitary paper market also includes the production of finished products at the Mucuri and Imperatriz units
Investments in Tissue Production in Brazil’s Northeast

This week, Suzano announced investments to acquire equipment for converting tissue paper, also known as sanitary paper, into finished products. The mill in Imperatriz will be the first one in the state of Maranhão to manufacture products such as toilet paper, tissues, napkins and more. Meanwhile, at the mill in Mucuri, Bahia, the investment involves the construction of a second conversion line.

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SCA to Invest $105 Million in One of its Tissue Operations in Mexico

SCA to Invest $105 Million in One of its Tissue Operations in Mexico

SCA said that it will invest about USD 105 million (approx. SEK 950m) in one of the company’s tissue facilities in Mexico to further strengthen competitiveness and enable future growth in that region.

SCA explained that the investment in Mexico will support its high-quality tissue offering under the Regio brand.

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Sappi to Invest $165 Million at its Somerset Mill to Increase Production Capacity

Sappi to Invest $165 Million at its Somerset Mill to Increase Production Capacity

Sappi Limited today announced the approval of a US$165 million capital project to expand Sappi North America’s manufacturing capabilities and flexibility to include a variety of consumer packaging products.

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Finland’s pulp and paper industry facing structural changes

Pulp exports expected to increase
Finland's pulp and paper industry facing structural changes

According to a forecast released in early October by the Finnish research firm PTT, Finland’s forest industry investments will increase the export of pulp and paperboard this and next year. However, the average export prices will decline. The diminution of the production and export of paper in Finland will continue strong. High demand in China maintains a positive outlook for the export of sawn timber. Demand is growing also because of activation of the construction industry in Finland and in Europe.

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