Uruguayan Paper Mill To Be Relocated

Spanish pulp company Ence has said it is to relocate its planned pulp and paper mill, which was to be built on the border between Uruguay and Argentina, to another as yet unnamed site in Uruguay. The planned mill – along with another by Finnish company Botnia — provoked strong protests by Argentine environmentalists, led to international arbitration and caused political friction between Uruguay and its larger neighbor. Ence claims environmental issues have not provoked the relocation decision, but rather logistics. The company denied it was planning to pull out of Uruguay. The two planned pulp and paper mills represent the largest foreign investment ever in Uruguay – totaling $1. 7 billion.