Botnia pulp mill in Uruguay experiences yet another delay

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Finnish paper manufacturer Botnia’s huge and often trouble pulp mill project in Uruguay is suddenly experiencing yet another delay before the switching on of the machines.
      On Thursday the Minister of the Environment of Uruguay reported on the signing of the necessary environmental permit, only to later add that he would postpone the task at least until next week on account of a request by Spain. Without the permit, the mill cannot be started.
     
For almost three years the construction of the Botnia mill in the small town of Fray Bentos has been a subject of passionate confrontation between Uruguay and Argentina. Fray Bentos is situated on the Uruguay side of the Uruguay River between the two countries.
      In Helsinki, Botnia communications manager Kirsi Seppäläinen estimated that after the granting of the permit the start-up of the factory will take "some days".
      Already a few days ago, some Botnia directors led by CEO Erkki Varis travelled to the mill on the outskirts of Fray Bentos. There are no plans to organise any kind of celebrations upon the starting of the plant, however.
     
The pulp mill, which comes with a price tag of nearly a billion euros, is the largest ever Finnish investment abroad as well as the largest single industrial investment in the history of Uruguay. The undertaking has been a subject of controversy right from the beginning. Even when the project was set in motion the Argentines on the opposite side of the Uruguay River were already protesting against plans by a Spanish company to erect a similar pulp mill in the area.
      On Thursday, demonstrators from the Argentine city of Gualeguaychú were still blockading the bridge across the Uruguay River next to the plant.
     
The protesters are primarily concerned over the mill’s possible negative impact on the environment. Lately they have also criticised the Argentine leaders for inadequate support for the demands to move the Botnia plant somewhere else.
      Botnia is currently conducting several projects in Argentina, the aim of which is to repair the firm’s tarnished reputation there. For now, the company representatives are nevertheless giving the ground-centre of the dispute, Gualeguaychú, a wide berth. Instead, a press conference will be organised in Fray Bentos.
     
The dispute between Argentina and Uruguay has also slowed down the economical and political integration plans for South America.
      Uruguay agreed to postpone the launch of the pulp mill until the Argentine presidential election, which was held last weekend. The cross-border dispute will be next handled at the XVII Ibero-American Summit held in Chile on November 8th to 10th.


Previously in HS International Edition:
  Solution to paper factory dispute between Argentina and Uruguay more remote than ever (13.3.2007)
  Harbour handling Botnia pulp deliveries in Uruguay opened on Wednesday (30.8.2007)
  Start up of Metsä-Botnia pulp mill in Uruguay set to be postponed (21.9.2007)

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