Finnish paper giant invests $2.7 bln to build Uruguay mill

Finnish paper and pulp maker UPM-Kymmene Corp. says it will invest $2.7 billion to build an eucalyptus pulp mill in central Uruguay in a project that the company says has been carefully prepared together with the government of the South American nation.

The Helsinki-based company said in a statement Tuesday the new 2.1 million-tonne mill will be located in central Uruguay and will raise UPM's pulp making capacity by more than 50% after it comes online in the second half of 2022.

The Finnish forestry company, one of the world's largest paper product and pulp producers, currently has a plant in Fray Bentos, southwestern Uruguay. UPM says it has secured the supply of eucalyptus through its own and leased plantations in Uruguay.