According to WRQ, a pulp and paper industry magazine, Uruguay is an attractive destination for European forestry investment at the moment.
The publication puts the country’s popularity down to its stable political environment, fast growing conditions for trees and strong business climate. It says that new fast-growing eucalyptus and pine plantations could support more pulp mills in the coming years.
The interest in Uruguay as a place for forestry is a new occurrence, with the country supporting just one pulp mill at the moment. However as interest increases, financing is set to be secured for at least another three.
The existing pulp mill is owned by Finnish firm Botnia. A further mill is being planned by Spain-based ENCE. This new mill will be designed to process around a million tonnes of timber from eucalyptus trees a year, which is the same capacity as the Botnia mill.
In addition to these two mills, Portugal’s Portucel Soporcel also wants to establish its own mill in southern Uruguay and has already signed a memorandum of understanding with the Uruguay government on the matter. Stora Enso, a Swedish-Finnish pulp and paper firm, also has investment plans for Uruguay. The firm already has forests in Uruguay and in Brazil.