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Weekly Report - 27 January 2011 (WR-11-04)
URUGUAY : Treading carefully over massive new pulp mill
The last pulp mill constructed in Uruguay triggered a diplomatic
conflict with Argentina that rumbled on for the best part of five years. So the
announcement by the Uruguayan government last week that it had struck a deal
with two foreign companies to construct another huge pulp mill raised a few
eyebrows. The new mill will be situated near the mouth of the River Plate
estuary, 200km downstream from the Fray Bentos mill built by the Finnish company
Botnia in 2007. When it comes on stream in 2013, it will make Uruguay one of the
world's leading cellulose producers.
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