Stora Enso said that its 50/50 joint-venture pulp mill project with Arauco — Montes del Plata at Punta Pereira, in the department of Colonia, Uruguay — which was scheduled to begin the start-up process at the end of September, is experiencing a delay.
The mill site is 92% complete and the commissioning of certain areas has already begun. However, the main technology contractors have informed Montes del Plata that they will not be able to complete the work according to the agreed timetable, according to Stora Enso.
"Montes del Plata is supporting the contractors and all local stakeholders to expedite the start-up process," the company added.
Initial plans called for start up of the 1.3 million tonnes per year pulp mill to take place towards the end of March of this year.
The operational EBIT impact of the delay for Stora Enso during 2013 is estimated to be EUR 7 million.
