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European forestry firms invest in Uruguay
03/06/2009
As a result of a good business environment and great growing conditions, European forestry firms have been increasingly looking to the South American country of Uruguay to grow their trees. As a result, analysts think there could be enough investment to support the running of several new pulpmills in the coming years.
The export of Eucalyptus wood chip is flourishing in Uruguay, with an estimated 1.3 million tons shipped out last year, more than double the amount shipped out in 2007.
The recent influx of European investment, from forest products manufacturers and forest plantation growers, has led to the establishment of fast-growing pine and Eucalyptus forests. However, there is currently only one pulpmill in the country, which is owned by Finland-based Metsa-Botnia, a company that provides around two-thirds of the one-miliion tons of wood processed by the mill each year.
There are now plans to expand this by building three more pulpmills if the funding for the projects can be secured through further investment.
Portuguese paper firm, Portucel Soporcel, has stated interest in building a 1.3 million ton pulpmill in Uruguay, which is expected to be built in the southeastern corner of the country.
Swedish-Finnish paper and pulp firm, STORAENSO, may also finance a pulpmill as it already has plantations in the centre of Uruguay. It hopes to expand its current plot to 100,000 hectares and establish a mill to process 100 million tons of wood each year.
The export of Eucalyptus wood chip is flourishing in Uruguay, with an estimated 1.3 million tons shipped out last year, more than double the amount shipped out in 2007.
The recent influx of European investment, from forest products manufacturers and forest plantation growers, has led to the establishment of fast-growing pine and Eucalyptus forests. However, there is currently only one pulpmill in the country, which is owned by Finland-based Metsa-Botnia, a company that provides around two-thirds of the one-miliion tons of wood processed by the mill each year.
There are now plans to expand this by building three more pulpmills if the funding for the projects can be secured through further investment.
Portuguese paper firm, Portucel Soporcel, has stated interest in building a 1.3 million ton pulpmill in Uruguay, which is expected to be built in the southeastern corner of the country.
Swedish-Finnish paper and pulp firm, STORAENSO, may also finance a pulpmill as it already has plantations in the centre of Uruguay. It hopes to expand its current plot to 100,000 hectares and establish a mill to process 100 million tons of wood each year.
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