In regard to a potential new pulp mill in Uruguay, this week Jaakko Sarantola, SVP, UPM (Finland), Uruguay Platform, reported that "good progress has been made in discussions between the Government of Uruguay and UPM concerning the infrastructure development and other local prerequisites for long-term industrial growth in Uruguay. We are now in agreement regarding the majority of the key items on the negotiation agenda. 

"Some remaining items still need to be solved as we start the work on the contract language which will specify the mutual responsibilities. Our focus lies heavily on solving these remaining topics," Sarantola added.

In July 2016, UPM commenced discussions with the Government of Uruguay regarding the prerequisites for long-term industrial development in Uruguay, including infrastructure development. The aim of these discussions during the first preparation phase has been to come to a mutual understanding on an investment agreement that defines the local prerequisites for industrial investment as well as initiatives for infrastructure development. 

The subsequent second preparation phase would consist of a pre-engineering study and permitting process, and achieving significant progress in the implementation of the infrastructure initiatives agreed upon during the first preparation phase. This phase is expected to last one and a half to two years. 

If these two preparation phases are concluded successfully, UPM will initiate the company's regular process of analyzing and preparing an investment decision regarding a potential pulp mill. 

UPM operates across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA, and UPM Plywood. The group employs around 19,300 people and its annual sales are approximately EUR 10 billion.