UPM Pulp Matters 1/2023

”THIS PROJECT WAS A GOOD EXAMPLE OF SUCCESSFUL COLLABORATION BETWEEN THE PRIVATE AND PUBLIC SECTOR.”

T hen, in the spring of 2020 – just when the project was getting up to speed and the organisation was ramping up – the COVID-19 pandemic struck like a bolt from the blue. However, thanks to prompt and consistent national restrictions and strict protocols at construction sites, the project continued with relatively minor complications. “The pandemic proved to be quite a test for a project where thousands of people are working simultaneously in a restricted area. At worst, 20% of the workforce were in quarantine, which naturally caused challenges. However, with the help of systematic and analytic planning, we managed to keep the works running.”

“Naturally, none of this would have been possible without the commitment of an excellent team and a large group of professionals. Funnily enough, I think I once professed in an internal meeting that I’m not really a project person, as my previous experience is mainly from running business and operations. So I’ve definitely stepped out of my comfort zone and gone through a personal development project,” he laughs. A ccording to Hakanen, the Paso de los Toros project can be divided into four phases. The first of these concluded in signing the investment agreement in November 2017. Shortly after, he was appointed to head the project. The investment agreement outlined the necessary prerequisites for UPM’s investment decision and the Uruguayan government’s criteria for balanced development of logistics, environment and employment in the country’s inland. “Something that is notable about this project is the way we have worked in cooperation with the government and public authorities from the very beginning. I consider this to be a good example of a successful collaboration between the private and public sector. When the scope of a project covers several decades, it’s even more important that the fundamentals are carefully thought out and the objective is clear.” Next, a roadmap was drawn up for implementing the investment agreement. In practice, both parties committed to certain actions in order to make the investment decision possible. For example, the government agreed to renew the country’s central railroad, enabling a direct rail connection from mill to port. “In July 2019 we reached a point where the roadmap had been implemented and we were able to go forward with the investment decision. Immediately after that we launched the third phase and began construction work on the mill, pulp terminal and all related operations,” Hakanen says.

44 months from beginning of construction to start-up

2.1 of eucalyptus pulp produced annually million tonnes

1

TWh

annual production of surplus renewable electricity

9