Stora Enso, Arauco Explore Site for New JV Pulp Mill in Uruguay

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Stora Enso, Helsinki, Finland, and Chilean company Arauco report that their joint-venture operation in Uruguay, Montes del Plata, will initiate a feasibility study of Punta Pereira in Uruguay as the site for a future pulp mill. Punta Pereira was also the site chosen for Spanish pulp maker ENCE's planned pulp mill. Stora Enso and Arauco acquired the majority of ENCE's operations in Uruguay last October.

The company says that studies prepared by Montes del Plata show that Punta Pereira, in the Department of Colonia, is a promising location for the pulp mill and therefore more detailed economic, technical, environmental, and social studies are justified. Punta Pereira also offers flexibility in terms of planning a long-term investment, the company adds.

"We have come out with a decision that is based on our preliminary economic, operational, and environmental findings. The identification of Punta Pereira will allow us to proceed to the next phase, a detailed feasibility study," says Stora Enso CEO Jouko Karvinen.

The final decision on construction of the new pulp mill will be taken by the boards of directors of Stora Enso, Arauco, and Montes del Plata once the feasibility study is completed.