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UPM top management met with Uruguay’s President Dr. Tabaré Vázquez

Press Release 8.2.2019 16:00 EET

(UPM, Montevideo, 8th February 2019 at 11:00 GMT-3:00) – UPM’s top management met with Uruguay’s President Dr. Tabaré Vázquez. During the visit, UPM´s President and CEO, Jussi Pesonen, and Petri Hakanen, Senior Vice President of UPM Uruguay Development Project, expressed their appreciation to Uruguay’s long-standing commitment in developing its forestry sector.

The discussions included a situation update on the implementation of the investment agreement signed between UPM and the Government of Uruguay in November 2017 and on the fundamental role of logistics infrastructure for the export sector to connect the inland by railway to Montevideo and a competitive deep-sea port. Moreover, views were exchanged on the stability and competitiveness of the operating environment in Uruguay.

“Since the signing of the investment agreement, both parties have come a long way and with a solid progress in developing various prerequisites for the establishment of UPM’s second state-of-art pulp mill in central Uruguay with proven environmental performance. We are now in an intensive phase, where the completion of all investment agreement targets is needed”, said Jussi Pesonen, UPM's President and CEO.

UPM is looking for a successful and timely execution of this unique and large construction project, which brings benefits to the whole country during the project phase and in the long term. “Today, there are still plenty of tasks to be done, and our team is intensively working to reach the topics agreed in the investment agreement within the planned timeline”, Pesonen concluded.

 

Notes to the Editor

In July 2016, UPM commenced discussions with the Government of Uruguay regarding the prerequisites for long-term industrial development in Uruguay. The aim during the first preparation phase was to come to a mutual understanding on an investment agreement that defines the local prerequisites for the operating environment of a world-class pulp mill project in the Uruguayan inland as well as initiatives for infrastructure development. The investment agreement was signed 7 November 2017.

The second preparation phase is currently proceeding. It consists of an engineering study, tendering and permitting processes as well as achieving significant progress in the implementation of the agreed infrastructure initiatives. Any relevant items are to be agreed prior to the possible final investment decision.

If these two preparation phases are concluded successfully, UPM will initiate the company's regular process of analysing and preparing an investment decision.

 

For further information please contact:

bcw | burson cohn & wolfe, tel. (+598) 27100757

 

 

UPM

We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. We employ around 19,000 people worldwide and our annual sales are approximately EUR 10.5 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com

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UPM in Uruguay

UPM's operations in Uruguay include the Fray Bentos pulp mill, the UPM Forestal Oriental forestry and wood sourcing company with its two nurseries, as well as the UPM Foundation.

UPM Forestal Oriental manages about 250,000 hectares of plantable land including own and Fomento partner producers' land. All of UPM's forest plantations are certified.

The Fray Bentos pulp mill started operations in 2007 and remains one of the world's most modern and efficient pulp mills. Its annual production capacity is 1.3 million tonnes of eucalyptus pulp. Besides pulp, the Fray Bentos mill is a significant biomass-based energy producer, accounting 8% of Uruguay's total energy production. The mill's wood raw material comes from sustainably managed local plantations.

Founded in 2006, the UPM Foundation works in coordination with local stakeholders to promote the development of rural communities through education, training and entrepreneurship, fostering a culture of safety and healthy living.

UPM employs directly and indirectly altogether 7,000 people in Uruguay and its contribution to Uruguay's GDP is 1.4%. www.upm.uy