Uruguay approves production hike for UPM mill

UPM's Frey Bentos pulp mill in Uruguay will increase production from the current 1.1 million to 1.2 million tonnes per year. According to UPM, the State of Uruguay has granted permission for the company to increase the annual production of the Frey Bentos pulp mill from the current 1.1 million to 1.2 million tonnes.

"The decision demonstrates the State of Uruguay’s continuing support to the development of the forestry sector in Uruguay," said Jaakko Sarantola, Senior Vice President of UPM’s Pulp Business.

However, Argentina has for years denounced the pollution from the mill into the Uruguay River, which separates the two countries. In a statement, Argentine Foreign Minister Hector Timerman said that it is is lamentable that the interests of UPM are so powerful that they have turned into the factor that determines the relationship between Uruguay and Argentina.

UPM-Kymmene had requested permission to increase pulp production at the mill by an additional 200,000 tons per year, but Uruguay has granted permission for only half of the amount.

According to UPM, the production increase can be take place without additional investments in the production processes.