UPM Biofore Magazine 1-2018

IN A SHORT TIME the Fray Bentos campus of the Technical University of Uruguay (UTEC) has become a modern seat of learning attracting students from all over the country.

UPM HAS AGREED with the Uruguayan government on the local prerequisites for industrial investment as well as initiatives for infrastructure development for a possible world- class pulp mill investment. A long- term industrial operation requires stable and predictable operational environment.

actions targeting the quality of the Rio Negro river. UPM is ready to support the government-led initiative to ensure the usage of best practices in the whole river basin. Boost to local economy The new pulpmill would have various positive impacts on Uruguay, providing the community with jobs, training and improved infrastructure. The mill’s location is in the least developed area of the country, potentially providing a major spur for rapid regional development similar to the earlier example of Fray Bentos. The new pulpmill is estimated to increase GDP by two per cent. It would boost the local economy and fuel the growth of hundreds of small andmedium sized companies throughout the entire value chain. It would also generate a significant number of permanent jobs in industry, plantations, harvesting, port operations and related services. Uruguay has what it takes Uruguay offers excellent natural conditions and an ideal climate for eucalyptus plantations, not to mention excellent wood quality. It also has 30 years of experience in forestry and over ten years in running pulpmill operations, which should prove extremely valuable in the new project. “Uruguay offers a strong foundation for the further advancement of the forest industry,” says Hakanen. “The education level and a stable political and social situation are fundamental assets. We have been operating in Uruguay for three decades now, so we have the experience and competences to execute a project of this size and nature,” he concludes. 

A year ago UPMand the government of Uruguay signed an investment agreement which outlines the local prerequisites for a potential pulp mill. The agreement details the roles, commitments and timeline for both parties as well as the relevant items to be agreed prior to the final investment decision. Currently UPM is carrying out technical studies and applying for the necessary permits. “A pulpmill investment of this scale requires efficient logistics to enable secure wood supply and pulp deliveries from the inlandmill to the port of Montevideo. This will require the construction of a modern railway to the port and a modern pulp terminal as well as development of the road network,” says Petri Hakanen , Senior Vice President of the UPMUruguay Development Project. The new railway would provide transport opportunities not only for forestry but also for other businesses like grain and wooden products, while also increasing Uruguay’s export competitiveness worldwide. “We need to ensure that infra­

structure development and the permit processes move forward as planned. These are the most significant requirements at this stage,” says Hakanen. Open sharing with the public UPM’s process for the planned new pulpmill takes place in three phases. After the ongoing second phase is completed, the local conditions for the decision-making process for the company's pulpmill are in place. UPMhas actively kept local stakeholders in Uruguay up to date on the progress of the project. “In September, we presented its latest status as well as the results of the Environmental and Social Impact Assessment, which we have submitted to the Uruguayan environmental authority for analysis”, notes Hakanen. The study concludes that there are solutions to mitigate all identified possible impacts of the planned new mill. These include proper planning for the construction period, compliance with best available techniques (BAT) and implementation of the planned

UPM plans to invest EUR 2 billion in a new mill to be located near the city of Paso de los Toros in central Uruguay. The new mill would have capacity to produce about 2 million tonnes of eucalyptus pulp annually. PLANNING FOR THE FUTURE

“Many mill technicians have advanced in their careers and they are now shift and day supervisors. Experts originally from the Fray Bentos mill are nowworking in UPM's various activities all over the world,” says Penttilä. To advance technical skills and engineering expertise in rural areas, UPMand the Technological University of Uruguay (UTEC) established a Regional Technological University (ITR) in Fray Bentos. Opened to students in 2016, the new university focuses onmechatronics, renewable energy, transport and logistics. “In the last recruitment call, seven out of ten resumes came from qualified people who live in this region,” says Gutfraind. “By creating new job opportunities, we are encouraging people to settle in the towns close to our operations.”

Jump start for sleepy town Fray Bentos has undergone a drastic transformation in the past few years. Just over ten years ago, it was a sleepy town seemingly stuck in a time warp, with a declining population and only a few basic services. “The biggest challenge for Fray Bentos was survival,” says Walter Latapie , the 70-year-old owner of a local tyre shop. When the mill project was The economic impact of the mill is apparent everywhere: “It brings jobs, increases people’s buying power and enhances the wellbeing of the whole community,” states Penttilä. Latapie agrees: “The mill exceeded all our expectations. Demand for work started to increase and we had to work hard to keep up!”  announced, the local economy received a welcome jump start.

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