Colonia, 8 September 2014. The country´s highest-ranking officials, including President José Mujica, participated in the ribbon cutting ceremony at the facilities along with 1,500 guests. 

USD 2,270 million have been invested in the pulp mill. Additionally, USD 230 million have been invested in a port with piers for barges and ocean-bound vessels. These projects entail the largest private investment in the history of Uruguay.

The high-tech industrial complex, which began industrial production in June 2014, includes a state-of-the-art pulp production mill, a port terminal and a biomass power plant.

Montes del Plata´s pulp mill has a nominal production capacity of 1.3 million tonnes of pulp per year and can reach its peak authorized production of 1.45 million tonnes per year Eucalyptus fibre wood, sourced mainly the company´s FSC® certified forestry plantations located throughout 11 departments in Uruguay. Production will employ the world`s best available techniques for the pulp sector by following IPPC BAT European Union standards.

The mill is the last link of a value chain that provides over 5,000 full-time equivalent jobs (including direct, indirect and induced jobs). As a whole, these jobs provide accumulated net wages of USD 100 million per year. Montes del Plata general manager Luis María Rodríguez stated in the inaugural a speech that "it is the work of the more than 5,000 people who participate in the long and fruitful production chain ranging the nursery to the port that has turned this dream into a reality." 

In its initial operation, the industrial complex will inject USD 844 million into Uruguay´s GDP.

Additionally, the power generation plant will supply up to 80 MW to the national grid through renewable and sustainable transformation of biomass. This electricity can provide power to 200,000 homes. 

Montes del Plata is a forestry company founded in Uruguay in 2009. Its objective is to produce and export Eucalyptus cellulose pulp to major world markets by operating in an efficient and sustainable manner an environmental, economic and social perspective. 

This project was made possible by the union in Uruguay of two large forestry sector companies: Arauco and Stora Enso. The new company is influenced by its Chilean and Swedish-Finnish origins and employs the world`s most demanding standards.

During the inaugural event, general manager Luis María Rodríguez noted that "everything that has been done up to this day, everything that has been invested, only makes sense and creates true value in the future." He added that beyond the satisfaction of the inauguration " we are fully aware of the great responsibility we have ahead of us to ensure that this project, which is now a reality, sustainably produces the fruits we expect it for many years to come."  

Mr. Rodríguez concluded by reflecting on Uruguay as a site for investment. "As Uruguayans we aspire for Montes del Plata to be seen today, and in the future, as an example. An example within the country and for the world that Uruguay is a place worthy of investing with confidence and certainty and that long-term projects, such as this one, can be accomplished and brought to fruition."

 Accomplishing commitments

The construction of the industrial complex near Conchillas also entailed large investments that are not directly linked to industrial operations.

For example, Montes del Plata has invested in the construction of three barges in Uruguay, with each barge able to transport 5,000 tonnes of roundwood. The construction of these barges signified an important support to the development of the national shipbuilding cluster.

In terms of transportation, Montes del Plata has added a modern port terminal to the country that can be used for river and maritime traffic through its connection to the Martín García Canal to enable pulp production to be directly shipped to end markets.

In addition, Montes del Plata has invested USD 28 million in the construction of a 12 km stretch of national highway to expand Route 55 the junction with Route 21 to the Punta Pereira mill as well as a grade separation interchange. The roadway was constructed so that heavy traffic can bypass towns close to the mill, thus improving safety while ensuring the cultural integrity of a town with significant historical value.

In terms of road safety, Montes del Plata has supplied lighting for bridges over the San Juan River and the Miguelete Creek, for an intersection of the local road Camino de la Palmera, and on Route 21. Furthermore, Montes del Plata recently finished paving the section of Camino de la Palmera that joins the new Route 55 with the town of Conchillas. The company is also executing various improvements (traffic lights, speed bumps, lighting, etc.) to increase traffic safety for the nearby towns of Campana and Ombúes de Lavalle. In addition, the company is also committed to supplying resources (trucks and personnel) for urgent maintenance work being carried out by the National Transport Ministry (MTOP) on Routes 12, 54 and 55.

Montes del Plata had set up first-class housing infrastructure in the cities of Colonia del Sacramento, Carmelo and at the Punta Pereira site to lodge workers participating in construction activities.

The 150-house neighbourhood built in Colonia has been turned over to the Municipal Intendancy to be used for social purposes the Carmelo Housing Centre will also remain under Colonia´s administration and the Punta Pereira housing infrastructure has been donated to the national government&rsquos Plan Juntos to be used for the development of new housing solutions.

Furthermore, 30 social-purpose housing units are being built in Carmelo to be directly donated to the Ministry of Housing`s National Housing Bureau. 

Of similar relevance are the sewage and water works that are already completed or are currently underway in the department, including: an effluent treatment plant for the city of Colonia, an effluent pre-treatment plant in Carmelo, a sewage treatment plant in Conchillas and a potable water plant also for Conchillas. All of these undertakings will have a highly positive impact on the quality of life for local people.

Yet, there are many intangible contributions for the local area and the country as a whole that are just as relevant as all these infrastructure assets, including: thousands of in-house training hours for construction and metal workers, continuous training for health and safety technicians and environmental specialists of outsourced companies, in-country training, training abroad for technicians and professionals currently operating the pulp mill and special courses for professional drivers specialising in wood transportation. These are only some of the contributions stemming the company´s endeavours to optimize conditions in Uruguay to attract more productive and industrial investments to the country.

Industrial complex - technical aspects

Pulp production: nominal capacity of 1.3 tonnes per year up to a maximum of 1.45 authorized tonnes per year.

Surplus power production: up to 80 MW.

Port terminal:  2 piers - a river vessel pier for receiving wood and an ocean vessel pier for shipping pulp and receiving supplies.

Incorporation of the industry´s Best Available Techniques.

Generation of clean and renewable energy based on biomass.

Clean Development Mechanism (UN Kyoto Protocol) power plant due for climate change mitigation.

Investment in the industrial complex: USD 2,270 million for the pulp mill and a forecasted USD 230 million for the port.

Construction employment: an average of over 3,000 workers during the three-year construction of the mill, with a peak of more than 6,300 workers in 2013.

Economic impact of industrial operations: USD 844 million per year (1.7% of GDP base 2012).

Permanent employment in Punta Pereira: 720 workers, more than half of which are Colonia.

Production chain employment: over 5,000 full-time equivalent jobs throughout 11 departments.Total wages associated to these jobs: USD 100 million per annum. 

Montes del Plata - more data

Montes del Plata is an industrial forestry company founded in Uruguay in 2009 following a 50/50 joint venture between Stora Enso (Sweden-Finland) and Arauco (Chile).

Forestry base: 140,000 hectares of Eucalyptus, planted in 11 departments in Uruguay (including the company´s own properties, rented properties and agreements with partner producers). 100% of the forestry base is FSC^® certified.

Productive integration: more than 70,000 livestock belonging to local producers graze on MdP plantations.

Conservation: Montes del Plata owns 80,000 hectares of non-forested land dedicated to other uses, including historic and high natural value conservation areas (wetlands, palm groves and native forests).

Nursery: opened in 2013, Montes del Plata´s nursery is located a few kilometres outside Fray Bentos and is a model for the entire continent. It employs over 100 people and has a surface area of 140,000 m2 with the capacity to produce 20 million seedlings per year. Construction entailed a USD 17 million investment.