Saga Welco - UPM pulp

UPM Signs Maritime Transport Contract with Saga Welco for Pulp Deliveries from Uruguay

Jan. 13, 2021 - UPM has signed a long-term maritime transport agreement with Saga Welco for the transportation of UPM’s Euca eucalyptus pulp production from the Fray Bentos pulp mill and UPM’s new Paso de los Toros pulp mill, which is under construction.

UPM pulp will be shipped from the ports of Nueva Palmira and Montevideo to customers around the world.

Saga Welco noted that it has provided sea transport services for UPM since 2013, delivering 1.3 million tonnes of annual pulp production capacity of the Fray Bentos mill.

In summer 2019, UPM started construction of a second pulp mill in Uruguay – a 2.1 million tonnes per year greenfield eucalyptus pulp mill near Paso de los Toros in the central part of the country. Simultaneously, UPM started building modern port operations specialised in global pulp logistics in the deep sea port of Montevideo and other works to strengthen local infrastructure related to the pulp mill. The project has proceeded according to plans – both pulp production and port operations are scheduled to start in the second half of 2022.

The new pulp mill will increase UPM's current eucalyptus pulp production capacity by more than 50% resulting in a step change in the scale of UPM Euca pulp deliveries and supplies from two mills to global customers in Europe, Asia and other markets.

About Saga Welco

Saga Welco AS is an international shipping company that offers high quality solutions for the transport of forest products and bulk cargoes. The company has its headquarters in Norway and several regional offices in strategic locations around the world.