UPM Biofore Magazine 1-2018

UPM FORESTAL ORIENTAL

•The company supplies the UPM Fray Bentos pulp mill daily with 320 trucks of eucalyptus wood from sustainably managed local plantations. •It manages about 250,000 hectares of land, of which 60 per cent is planted with eucalyptus. The remainder consists of natural grazing land, conservation areas, roads and other infrastructure. •The plantations are FSC ® and PEFC™ certified. •Beekeepers produce high-quality honey around UPM’s eucalyptus plantations. •In 2015, the United Nations’ Food and Agriculture Organization FAO recognised UPM’s forestry operations for its exemplary forest management practices. •A total of 85 per cent of the local communities where UPM’s plantations are located have fewer than 500 inhabitants. study of the fish population. “More than 10 years’ worth of cumulated data monitoring by national and international environmental authorities has confirmed that the mill doesn’t have a negative impact on the river or its inhabitants. We communicate transparently on environmental issues and share the study results with all our stakeholders,” Penttilä says. Motivated experts and local talent The company’s internal culture fosters continuous development. When construction of the Fray Bentos mill kicked off in 2004, there was a need to recruit engineers andmill workers with good basic skills. Today, these same people have evolved into sought-after professionals.

“Harvesting andwood transportation are run twenty-four-seven, in three shifts. This creates many jobs and opportunities for entrepreneurship all year round, which boosts the local economy,” he says. UPMForestal Oriental sources part of its pulp wood through its Fomento cooperation programme, which today includes 550 Uruguayan producers. In practice, Fomento offers local landowners the possibility to diversify their traditional production with cattle and agriculture through sustainable eucalyptus production using UPM’s high-quality seedlings. One of these contract landowners is Eduardo Alvarez fromDurazno in Central Uruguay. “Working with UPMprovides stability. We are also able to respect the environment without harming the business. The experience has been excellent. Everything is done by the book,” he says. Alvarez isn’t the only one benefiting from the trees growing on his farm. His cattle are happy too, as the eucalyptus trees provide shade and shelter from the scorching heat of the sun. Strong ties with local communities “We constantly engage with the local communities in the areas where we operate,” says Magdalena Ibañez , Manager of UPMFoundation. “This includes regular meetings, visits to the pulpmill and plantations as well as educational events”. Founded in 2006, UPMFoundation works with local stakeholders and public institutes to develop rural communities through education, training and entrepreneurship. In Uruguay, a majority of the industries and businesses and nearly half of the population are located in or around the capital of Montevideo. What makes UPM’s operations special

is that they are located in rural areas where people have less access to training opportunities. “The purpose of the UPM Foundation is to strengthen local communities by initiating development projects especially in education and training. Training opportunities and jobs are a way to mitigate rural to urbanmigration,” Ibañez says. Five-year safety streak The UPMFray Bentos mill, located on the banks of the Uruguay River in the south-western part of the country, was founded in 2007. It is still considered one of the world’s most efficient pulp mills, with annual production capacity of 1.3 million tonnes of eucalyptus pulp. Pulp bales are transported downstream from the mill aboard river barges to the port of Nueva Palmira, where they are loaded on larger ships heading to Europe and Asia. “Our mill is in great condition. People are motivated and we have good working practices. Everyone has a great attitude towards their work,” says ProductionManager Martin Gutfraind . Safety is the top priority in all of UPM’s operations. “Currently the mill is on an over five-year streak of no lost time accidents for our own employees at the site,” says Gutfraind. Since the start-up of the mill, UPMand the local authorities have been continuously monitoring its environmental performance with the help of independent researchers and experts. The monitoring has concentrated mainly around air emissions, water effluents and waste. The water quality of the river has been the focal point of these studies. A great example of this intensive monitoring is an extensive

UPM FRAY BENTOS •The mill was founded in 2007 and has an annual production capacity of 1.3 million tonnes of eucalyptus pulp, which goes to tissue, specialty paper as well as printing and writing paper manufacturers in Europe and Asia. •It is a significant biomass energy producer, accounting for eight per cent of Uruguay’s total energy production. •A total of 800 people work on the mill site daily in different operations ranging from production to logistics. •Fray Bentos is the first non-European mill to be certified in accordance with the voluntary EU Eco-Management and Audit Scheme (EMAS) promoting legal compliance and mitigation of environmental impacts. •With over 30,000 visitors in the past ten years, the mill is a tourist attraction in Fray Bentos.

UPM AIMS TO MAKE plantations multifunctional. In addition to pulpwood they provide shelter for cattle and eucalyptus honey during the blossom. Mushroom picking courses are arranged in the surrounding communities. A TOTAL OF 800 PEOPLE WORK on the mill site daily. Safety is the top priority. Currently Fray Bentos is on an over five-year streak of no lost time accidents for our own employees at the site.

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