UPM seeks to invest US$260mn in Montevideo port terminal

Finnish forest company UPM was the sole bidder for a 50-year concession of a pulp terminal in the port of Montevideo. The firm wants to invest US$260mn if it wins the contract.

In a press release, UPM said that it participates in the tender, held by Uruguayan port authority ANP, to advance on plans to install a new pulp mill in the country.

In 2017, both UPM and the local government concluded the first round of negotiations. As part of the deal, the government committed to improve the highways, port and railways infrastructure.

The second phase of the negotiations is currently underway.

"Achieving significant progress in the implementation of the agreed infrastructure initiatives by the Government of Uruguay and any relevant items are to be agreed prior to the possible final investment decision. If these two preparation phases are concluded successfully, UPM will initiate the company's regular process of analysing and preparing an investment decision," the firm said.

According to UPM, the terminal would handle 2Mt of pulp per year.