UPM-Biofore-Magazine-2-2019

U PM’s largest-ever investment is set to have a profound impact on Uruguay’s economy and society, especially in the central region of the country. “The installation of the UPMplant in the town of Pueblo Centenario has influences throughout the region,” says Carmelo Vidalín , the governor of the Durazno province in which UPM’s new plant will be located. “Duraznenses from across the province see the plant as an opportunity for economic growth through access to better employment opportunities,” he adds. “They also see it as an opportunity for development by virtue of access to new technologies, logistics, transport, education, health and services.” An economic powerhouse According to a recent study by Deloitte, one of the four largest accounting firms in the world, the economic impacts of the project will be substantial. Overall, UPMwill invest more than USD 3 billion in building the pulp mill, a pulp terminal at the port of Montevideo and improving the local infrastructure. This will be matched by an estimated USD 1.2 billion public investment, which will be used to improve associated public infrastructure. Once the construction phase has been completed and the new pulp mill comes into operation, UPMPaso de los Toros, will continue to create value for the Uruguayan economy. For instance, the construction phase of the project by itself is expected to create more than 6,000 full-time jobs at its peak and pump almost USD 1.2 billion into the Uruguayan economy. Additional public infrastructure spending – from dredging the port entrance inMontevideo to upgrading roads and bridges as well as connecting the country’s capital to Durazno by rail – will also add to this. Once completed, this central Uruguayan rail systemwill be able to haul double the amount of cargo that is moved, lowering the logistical costs for other industries interested in the region.

UPM’s new pulp mill in Durazno, close to the city of Paso de los Toros, will create 10,000 jobs and spur social spending across Uruguay.

CARMELO VIDALÍN

BASED ON SOCIOECONOMIC impact studies, the mill is estimated to increase Uruguay’s GDP by about 2% and the annual value of Uruguay’s exports by about 12%. When completed, about 10,000 permanent jobs are estimated to be created in the Uruguayan economy.

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