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Latin American Economy & Business - August 2013 (ISSN 1741-7430)

URUGUAY: Pulp, sulphur and politics

On 14 September Finland’s UPM-Kymmene Oyj will close down its large-scale pulp processing plant in Uruguay’s Fray Bentos for annual maintenance. It says that if the government authorises it to increase annual output to 1.3m tonnes, it will re-start production on 25 September; but if it has to keep to the current 1.1m tonne capacity limit, it won’t be able to re-start operations until November. The choice between the two options is highly political, and sources suggest that despite the enthusiasm of local business, the Montevideo government is unwilling to authorise greater production.

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