UPM Forestal Oriental Annual Report 2021

EDITORIAL Álvaro Fitipaldo Head of Operations at UPM Forestal Oriental

A new year filled with achievements and challenges has come to an end. The implementation of our operational growth plan, in view of operations starting at the pulp mill in the department of Durazno, set the pace during for the year. The context determined by Covid-19 continued to demand our focus to ensure safe working conditions troughout the entire chain. During the year, we continued to develop the long-term forestry base to reach 295,000 hectares of land planted. Despite Covid-19, our nurseries maintained high levels of production in line with the demand needed to supply plantations for the company’s own plots, as well as for producers associated with our Development Programme.

On the other hand, the construction of a new nursery in the Sarandí del Yí area has continued to make good progress and is moving forward according to plan. This project, with a US$ 25 million investment, will not only allow us to further capitalise on the advances of our Genetic Improvement Programme, but also create important job opportunities for the region. For these purposes, we implemented training courses for the operation or nurseries, aiming to prepare those interested in applying for these roles when the nursery begins operations in 2022. The UPM Fray Bentos mill received an efficient and well-sustained timber supply which guaranteed

the exceptional flow of production during the entirety of 2021. In terms of infrastructure development, we opened new areas of work and began construction of the interior roads needed for timber supplies once the new mill begins operations. In addition, this work will also help maintain the stock of necessary roads in order to sustain the timber supply to Fray Bentos. On the harvesting front, we were able to maintain high production rates and continued to make progress with the development programme

for new contractors. We also made progress in the implementation of induction plans for the new service providers

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