UPM is tendering for a pulp terminal in Montevideo deep sea port in Uruguay
January 09 2019 - 10:00AM
(UPM, Helsinki, 9 January 2019 at 17:00 EET) - UPM
is taking part in the international public tendering process in the
port of Montevideo organized by the National Ports Administration
(ANP) of Uruguay. The scope of the concession tender is the
building and operation of a port terminal specialized in the
storage and shipping of pulp, chemicals and other inputs related to
pulp production with a capacity to handle approximately 2 million
tonnes of pulp annually. The tender includes the design, financing,
engineering, construction, operation and maintenance of the pulp
terminal. The tenure of the concession would be for 50 years.
Port development, supporting an efficient and
reliable outbound logistics, is a key fundamental for the potential
installation of the third pulp mill in the country. Modern
facilities in the Montevideo deep sea port would offer a
competitive gateway from South America to growing export markets
benefiting the Uruguayan economy.
The tender is made in the context of UPM's current
study on the potential of building a new pulp mill in Uruguay. The
investment agreement with the Government of Uruguay was signed in
2017. As part of the agreement the Government will promote
concession for a terminal specializing in pulp in the Montevideo
port with rail access. The possible pulp mill would have an annual
capacity of approximately 2 million tonnes of eucalyptus market
pulp. The preliminary estimate for a pulp mill investment on site
is approximately EUR 2 billion.
Two preparation phases need to be successfully
completed before UPM would be in a position to make a final
investment decision on the pulp mill. The second preparation phase
is currently proceeding. Achieving significant progress in the
implementation of the agreed infrastructure initiatives by the
Government of Uruguay and any relevant items are to be agreed prior
to the possible final investment decision. If these two preparation
phases are concluded successfully, UPM will initiate the company's
regular process of analysing and preparing an investment
decision.
If awarded a concession in the Montevideo port,
UPM's financial commitment in the form of a performance bond would
be USD 20 million at this stage. At the time of the potential final
investment decision on the pulp mill project UPM would proceed with
the port investment decision and start of the construction of the
port facilities. The preliminary UPM investment estimate for the
port facilities would be approximately USD 260 million.
UPM is not in a position to disclose further
information of the tendering process at this stage.
UPM, Media
Relations
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tel. +358 40 588 3284
media@upm.com
UPM
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future beyond fossils across six business areas: UPM Biorefining,
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Papers and UPM Plywood. We employ around 19,100 people worldwide
and our annual sales are approximately EUR 10 billion. Our shares
are listed on Nasdaq Helsinki Ltd. UPM Biofore - Beyond fossils.
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Source: UPM via Globenewswire
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