Portucel has plans to install a pulp mill either in Uruguay or Brazil, even though it was reported that Mozambique is also a possibility. The company is carrying out different studies in the countries, but Uruguay had more chances than the rest. Portucel´s project would mean a 1.5 billion dollar investment and would include the production of paper in the chosen country.

According to Portuguese newspaper Jornal de Negocios, Portucel´s Executive Director, José Honório, said that the company is completing “crucial studies” in Brazil before “making a final decision”.

Honório said that there is an obstacle in Uruguay that “depends entirely on the government”. “The country´s port infrastructure is not enough and there is a need to invest in a deep-water port”, which depends entirely on the government’s will.

Meanwhile, according to Uruguayan newspaper El País, Alberto Breccia, Presidential Secretary, said in March that the company was still interested in investing in Uruguay and that negotiations were moving forward.

Portucel states in a report that they will continue studying opportunities to expand their business in Latin America and Africa, with significant economic and technical investments. But they warn that in order to do this, they will demand a broad and complete package of conditions to ensure the viability of their investment.

Jornal de Negocios reported that in April, an unidentified official source said that they were studying the situation of the Uruguayan territory in terms of a potential investment. “It is important to take into account the logistic structure required for such a project, especially in terms of transport (railways and roads) and the availability of an oceanic port to export cellulose pulp with the capacity, efficiency and cost-effectiveness needed”, stated the unidentified source.

There is a pulp mill already installed in Uruguay, in Fray Bentos, Rio Negro department, owned by Finnish company UPM-Kymmene. This company is one of the country’s largest owners of forestry plantations, mainly used for the industry of cellulose pulp.

It is estimated that approximately 1 million hectares are being forested in Uruguay. The country has around 16 million hectares of arable land. Big transnational companies such as Swedish-Finnish Stora Enso, Chilean Arauco and US Weyerhaeuser are among the largest owners of tree monoculture plantations in Uruguay.

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