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24 January 2011 | |

Pulp fact not fiction

The construction of another pulp mill sparks debate in Uruguay

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Some representatives of the ruling party of Uruguay, Frente Amplio, said the benefits for the country of the investment of the company Montes del Plata for the installation of a pulpmill were relative. This is not the ideal production model, some lawmakers admitted.

The most critical voice came from the Communist Party, a member of Frente Amplio. Senator Eduardo Lorier spoke of the scarce employment generated by the pulp industry, the scarce profits it leaves for the country and the negative impacts of forestation to supply the pulp industry.

The claims of the Uruguayan lawmakers come to light after Montes del Plata (a consortium made up by the Chilean company Arauco and the Finnish-Swedish company Stora Enso) officially confirmed on Tuesday that it will invest 1.9 billion dollars in the installation of a pulpmill in Conchillas, Colonia department. The pulp mill will produce 1.3 million tons of pulp a year starting in 2013. The company will also build a port and an electric power generator from biomass.

Senator Lorier was quoted on newspaper La Diaria, saying once the pulpmill is operating and the pulp is exported “it will generate very few resources for the country” because the companies operate in a free trade zone regime. That is how Finish company UPM-Kymmene operates in Fray Bentos, Río Negro, and that is how Montes del Plata will operate in Conchillas.

Lorier also mentioned that forestation, as well as the soy expansion in the country generates a “reprimarization” of the Uruguayan production that is exportable, that is to say, we export more and more raw materials, and also there is a growing foreignization of land and accumulation of property”.

Photo: http://www.flickr.com/photos/billy_wilson/

(CC) 2011 Real World Radio

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