Arauco and Stora Enso Will Invest in Uruguay’s Biggest Private Project Till Date

Added by admin on January 23, 2011

A unit of the Chilean company Copec, Arauco, together with Stora Enso, a paper maker from Finland, is planning to make investment amounting $1.9bn in a Uruguayan pulp mill. The two companies have made the announcement on Tuesday.

According to the given statement, the pulp mill which is to be built in Uruguay will have 1.3m metric tons and will begin operating at the beginning of 2013. This is said to be the largest private investment in the history of Uruguay.

“The mill is forecast to have a positive impact on Uruguay’s GDP of 0.8 percent during construction and 2 percent when it is operating,” was written in the company’s statement.

At the same time, Katja Keitaanniemi, an analyst at Swedbank from Helsinki, Finland, said that business in Latin America with regard to the pulp business is currently going excellent.

“But the big question is: how many other projects will come true? That is a risk since China’s demand is not endless,” said analyst Keitaanniemi.

On Tuesday, Auraco shares experienced an increase of 0.86 per cent, as they had already went up by 2 per cent soon after the announcement was made by the company. At the same time, the Finnish company Stora Enso also saw a rise in shares by 3.7 per cent.