Consumables
UPM inaugurates its Paso de los Toros pulp mill in Uruguay
Thursday 15. June 2023 - UPM made its decision to invest in the Paso de los Toros pulp mill in 2019. Despite the pandemic, the mill started up in April 2023, and its first pulp delivery to customers followed in May. UPMs third tree nursery in Sarand del Y started operations in summer of 2022.
UPM inaugurated its Paso de los Toros pulp mill in the department of Durazno in Central Uruguay. The inauguration event was attended by the President of Uruguay Luis Lacalle Pou, several ministers and representatives of other stakeholders who have participated in the successful execution of UPMs growth project in Uruguay.
In his opening speech the Chairman of UPMs Board of Directors Henrik Ehrnrooth highlighted the consistent development of the sustainable Uruguayan forest industry and UPMs operations in the country:
“A key milestone for the Uruguayan forest industry was the Forestry Law which was enacted in 1987. The aim of this law was to diversify the countrys industrial portfolio, ensuring sustainable land-use and protecting its natural forests. We can all see how well it has succeeded in all these goals and created a strong new export industry in Uruguay, sustainably.”
“Today we celebrate UPMs largest investment in our 150-year of history. UPMs first eucalyptus seedlings were planted in 1990. The path from then until today has been a great cooperation between authorities, UPM and its partners. The results of this cooperation will serve the interests of Uruguay and its people as well as UPM for decades to come,” said Ehrnrooth.
UPM made its decision to invest in the Paso de los Toros pulp mill in 2019. Despite the pandemic, the mill started up in April 2023, and its first pulp delivery to customers followed in May. UPMs third tree nursery in Sarandí del Yí started operations in summer of 2022, and the new pulp terminal in Montevideo in October the same year. The total USD 3.47 billion investment covers the pulp mill and the port terminal as well as investments in the local infrastructure in Paso de los Toros.
The UPM Paso de los Toros pulp mill has an annual production capacity of 2.1 million tonnes of eucalyptus pulp. The mill represents the latest and best available technology. It is energy efficient with minimal environmental impacts and optimised maintenance.
With an increase of more than 50% in UPMs current pulp capacity, this growth investment creates a step change in the scale of UPMs pulp business and future earnings. It also has a significant impact on Uruguays economy and creates significant opportunities for the countrys people and communities.
Altogether UPMs value chain – eucalyptus plantation operations, the Fray Bentos and Paso de los Toros pulp mills and related logistics – together with its contractors creates approx. 7,000 direct and 10,000 induced jobs in Uruguay.