Botnia Continues Building Uruguay Mill, for Now
Date: 14-Mar-06
Country: FINLAND
The mill, being built along the Uruguay River between Uruguay and Argentina has caused a diplomatic crisis between the two neighbours over environmental safety, but their presidents agreed at the weekend to a halt in construction for 90 days.
The decision concerned Metsa-Botnia's mill as well as that of Spain's Ence, also being built in the area. The projects, with a total combined value of $1.7 billion, comprise Uruguay's biggest industrial investment.
Under the presidential agreement, Argentina's Nestor Kirchner also agreed to suspend months-long roadblocks across the river from one of the proposed mills.
Construction of the mills has led to demonstrations by Argentines and environmentalists on concerns about contamination of the river and the impact on tourism and fishing.
"We haven't had any official announcement or request from the government of Uruguay. We don't even know its content, so we are now waiting for this," Metsa-Botnia spokeswoman Annikki Rintala said.
"When we receive it, the company will consider and see what can be done, and then of course decide together with Uruguay on how to proceed," she said, adding that further information would probably be available later in the day.
Metsa-Botnia's construction site currently employs about 1,500 workers, she said, adding that according to the original timetable, the plant should be ready in the third quarter of 2007.
"Now that there are no legal bases for halting it, construction work will continue for the time being. Of course once it has been jointly decided how to proceed, then we will see what we will do," Rinatala said.
A halt to construction could delay Metsa-Botnia's timetable and bring additional costs, she said, adding it was too early to estimate how much those could rise.
Metsa-Botnia is 47 percent owned by top global magazine paper maker UPM-Kymmene, while leading European fine paper maker M-real owns 39 percent.