Oy Mets Botnia Ab is gearing up to build a mill in Uruguay. The $1.1 billion investment will have a production cap…
Oy Mets Botnia Ab is gearing up to build a mill in Uruguay. The $1.1 billion investment will have a production capacity of 1 million t/a of bleached eucalyptus pulp. Excavation of the mill site is set to begin immediately, and construction of the mill itself is planned to take two years. Start-up is expected for the third quarter of 2007.
Approximately 60% of the wood the mill will use will be supplied from plantations of Botnia’s subsidiary, Compania Forestal Oriental. The remaining 40% will come from contracts with private forest owners, funds, foundations and cooperatives.
UPM is participating in the project, with a $67 million direct capital investment. The company will have a 47% holding in the pulp mill.
In 2006, the project is expected to directly employ roughly 4,500 people. Once the mill is finished, approximately 300 jobs will be available, and will provide further employment, both directly and indirectly, for 8,000 people. Wood procurement is expected to generate an additional 2,000 jobs.
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