Annual Report 2023 UPM Forestal Oriental

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UPM

UPM URUGUAY

UPM’s operations in Uruguay include the pulp mills in Fray Bentos and Paso de los Toros; UPM Forestal Oriental, which supplies the mills with timber and has three nurseries located in Paysandú and Durazno; the UPM Foundation and the specialised pulp terminal in the port of Montevideo. UPM Forestal Oriental manages around 320,000 hectares of plantable areas, including company owned land and third-party properties through the Forestry Development Programme. UPM’s plantations are certified under the international FSC ® (Forest Stewardship Council ® ) and PEFC sustainable forest management standards. The company’s pulp mills in Uruguay produce Eucalyptus cellulose pulp from raw materials that come mainly from national plantations managed in a sustainable way. The pulp mill at Fray Bentos began operations in 2007 and continues to be one of the most modern and efficient mills in the world. It has an annual production capacity of 1.3 million tonnes. On the other hand, UPM Paso de los Toros, which began operations in April of 2023, has the capacity to produce 2.1 million tonnes. In addition to the

We offer responsible, renewable and innovative solutions to move towards a future that goes beyond fossil-based products in six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As an industry leader in responsibility, we are committed to the United Nation’s Business Ambition for 1.5C and to scientifically set targets to mitigate climate change. We have around 16,600 employees worldwide and our annual sales reach approximately EUR 10.5 million. Our shares are listed on the Nasdaq Helsinki Ltd. Stock Exchange. UPM Biofore: Beyond Fossils.

production of cellulose, both mills produce substantial, predictable and renewable biomass energy to supply their production processes. Meanwhile, the surplus energy is used to produce chemicals and to supply the national grid, which represents around 20% of the total energy produced in the country. The production of pulp from the mill in Paso de los Toros is transported by the central railway to Montevideo. This modern and efficient railway is based on European standards and best practices. Founded in 2006, the UPM Foundation works in coordination with local institutions and community leaders within the sphere of influence of its operations with the aim of becoming an instrument in strengthening communities in the long term. Alongside its contractors UPM generates close to 7,000 direct jobs. Additionally, the company’s operations in the country have created some 10,000 indirect and induced jobs throughout its value chain.

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