15 November, 2011
Montes del Plata production will increase Uruguay`s GDP by USD 770 million
Montes del Plata`s planned industrial production at Punta Pereira, the largest private investment in Uruguayan history, will significantly boost the country`s economy, especially after the pulp mill starts production, but also during the construction phase.
In addition, this economic growth will be accompanied by a significant increase in direct, indirect and induced jobs.
These conclusions are the result of the economic impact study developed by the Deloitte consulting firm. The report states that once the Montes del Plata mill is fully operational, gross domestic product (GDP) will increase by USD 770 million. This figure is equivalent to nearly 2% of GDP in 2010. Considering all direct, indirect and induced impacts that will occur during the construction phase, the report notes the project will contribute USD 697 million to domestic GDP in a little over two years time.Deloitte defines induced effects as those derived consumption originating spending as a consequence of direct and indirect effects. The firm states that about 500 people will be directly employed at the Punta Pereira site with salaries considerably higher than rest of the economy on average at USD 20,000 per year on average.As a result, the department of Colonia will receive about USD 15 million per year for this item alone. Meanwhile, by aggregating the indirect and induced effects mill operations (including forestry activities in several departments around the country) the impact of the project on employment could total 5,084 equivalent full-time jobs.During the 27-month construction phase, the undertaking will create approximately 6,180 jobs. Of this total, 3,214 will correspond to construction and the rest will be created by suppliers in the sector and in other economic activities.The study also shows that annual cellulose pulp exports the plant will total approximately USD 677 million. This figure would have accounted for 9% of all goods sold abroad by Uruguay last year.The Punta Pereira industrial and port project includes a USD 1,900 million investment by Montes del Plata, equivalent to 25% of gross investment in Uruguay in 2010.