Helsinki (News release) -- UPM inaugurates today its new pulp terminal in the port of Montevideo, Uruguay. This investment of approximately USD 280 million is a fundamental part of UPM's USD 3.47 billion growth investment in Uruguay that includes a state-of-the-art pulp mill in Paso de los Toros, new eucalyptus tree nursery as well as local community investments in Paso de los Toros.

"This is a significant milestone in our growth project in Uruguay. The new pulp terminal with direct connections from the new pulp mill and to the global markets plays a key role in the growth and competitiveness of UPM's pulp business," says UPM President and CEO Jussi Pesonen. "The public infrastructure investments to the deep sea port and railway improve the competitiveness of all export sectors in Uruguay."

The new pulp terminal is located in the newly developed deep sea port in Montevideo, and it will have a direct rail connection to the new UPM Paso de los Toros mill. In the future, all UPM pulp from Uruguay will be shipped with fully loaded ocean vessels directly from Uruguay. This is a significant change to the current logistics that have depended on the deep sea ports in Brazil. The new direct connection from Uruguay to global markets increases efficiency and supply security.

UPM will operate the pulp terminal as a long-term concession holder. The terminal will operate 24/7 with an annual operating capacity of over 2 million tonnes of pulp and approximately 100 ships per year, creating a 60% increase in the total annual cargo exported from the port of Montevideo. The terminal will employ approximately 100 people, with another 200 people working in the loading and unloading of cargo ships. The terminal includes a large storage warehouse of over 50,000 square meters, a control room, logistics spaces and offices.

UPM's new 2.1 million tonne greenfield eucalyptus pulp mill near Paso de los Toros in central Uruguay is scheduled to start production by the end of Q1 2023.