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Finnish UPM Announced USD 3 Billion Investment in Uruguay

Today,
Finnish UPM announced its decision to construct a 2,1 million tonne greenfield
eucalyptus pulp mill in central Uruguay. According to UPM’s press release, the
total investment would amount to more than USD 3 billion (including USD 280
million investment in a deep-sea pulp terminal in Montevideo port), thus
becoming the largest private investment in Uruguay’s history.

The
mill is scheduled to start up its deliveries in the second half of
2022. In the most intensive construction phase, there would be more than
6,000 persons working on the site. Further to the same sources, the plant would
represent the state-of-the-art in the pulp industry.

The announcement follows a long negotiation process upon which the necessary
permits have been granted and the material agreements with the Government of
Uruguay have been concluded.

With more than 350,000 hectares of owned and leased plantations, this would be
UPM second pulp-plant in Uruguay, after its acquisition of Finnish Metsa-Botnia
plant in 2009. 

Bergstein has served as main external legal advisor to one of the two existing
pulp-plants in Uruguay and has the necessary expertise to provide sophisticated
legal and tax advice in the industry.