New UPM pulp mill starts operation in Uruguay

The Finnish forest industry company UPM has received the final operating authorization for its new Paso de los Toros pulp mill in Uruguay from the environmental authorities, said UPM in a press release on Saturday.

The start-up of the mill commences immediately, and first customer deliveries are expected to ship in May.

Through the growth investment, UPM and its subcontractors will create 4,000 new jobs through the value chain, as well as about 6,000 induced jobs and a 2% increase in GDP for the Uruguay economy.

In addition to the pulp mill, the overall investment of USD 3.47 billion includes a deep sea-port terminal in Montevideo, a new eucalyptus tree nursery and local investments in infrastructure and facilities.

All of these are already completed and in operation.

With the expected cash cost level of approximately USD 280 per delivered tonne of pulp that UPM can now confirm, the UPM Paso de los Toros will be one of the most competitive mills in the world and enables attractive returns for the investment in various market scenarios.