The Frey Bentos mill started up in November of 2007 and produces bleached hardwood eucalyptus pulp which can be used for manufacturing fine paper, magazine paper, tissue paper and carton boards. The mill is located on the banks of the River Uruguay, four kilometres east of the city of Fray Bentos.
"The decision demonstrates the State of Uruguay’s continuing support to the development of the forestry sector in Uruguay," said Jaakko Sarantola, Senior Vice President of UPM’s Pulp Business. However, neighboring Argentina has for years alleged that the mill pollutes the Uruguay River, which separates the two countries. "It is lamentable that the interests of UPM are so powerful that they have turned into the factor that determines the relationship between Uruguay and Argentina," said Argentine Foreign Minister Hector Timerman. UPM-Kymmene had requested permission to increase pulp production at the mill by an additional 200,000 tons per year, but the Uruguayan government granted permission for only half of the amount. "We have authorized an increase of half of what they asked for," Uruguayan President Jose Mujica said, adding that his decision was "provisional" and subject to UPM-Kymmene's compliance with environmental standards. According to UPM, the production increase can be take place without additional investments in the production processes. However, UPM plans to invest in a cooling system for the mill’s effluent water. (Reuters)
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