Portugal takes over Uruguay's second pulp plant pr

Portugal takes over Uruguay's second pulp mill project

the Spanish pulp and paper producer ence is ready to accept $400million from its Portuguese competitor Portugal pulp company Portugal to maintain the operation of its pulp mill project in Uruguay. According to the Spanish financial newspaper, Portugal pulp company portucel will have a considerable share of factories and woodlands, and form a strategic alliance with ence to develop manufacturers, prosper the market and provide customers with more economical and practical experimental machines

in January 2008, the heavily indebted ence announced that it was considering making a strategic choice for its major overseas project, namely, investing 1billion euros to build a 1million T/a pulp mill in Colonia by the plate river. At that time, the officials of ence said that the material could be processed with special functions according to the needs of customers, and they would spend two months to consider several schemes in front of them

according to the News quoted by ence, according to the amount of assets provided and whether there is forest land to supply pulp mills, there are several quotations ranging from 300million US dollars to 400million US dollars due to domestic waste paper recycling, the main paper products are box board corrugated paper and white paperboard. Among the companies involved at that time, Portugal pulp company Portugal, Storaenso of Finland, botarantin of Brazil and Nippon paper of Japan have been identified

however, the most competitive solution is portucel from Portugal, which also has its own pulp mill project in Uruguay and has agreed to reach a strategic alliance with ence to develop joint projects in the Iberian Peninsula. The newspaper said that if ence sold the whole project in Uruguay, it would mean a significant relief to its financial pressure. By reducing the main debts of the companies with districts and municipalities, it could focus on the development of the Iberian Peninsula

ence received a loan of 1.225 billion euros for projects in Uruguay, of which 350million euros came from Spain. According to the balance sheet of 2008, the debt of ence at that time was as high as 453million euros. By selling projects in Uruguay, the company can reduce its financial commitment by 70%

ence achieved sales of 676million euros and a profit of 4.7 million euros in 2008. By selling the pulp mill project in Uruguay, the company can distribute income to shareholders

according to the original schedule, Colonia pulp plant will be put into production at the end of 2010, with an annual pulp production capacity of 1million tons, while using biomass from trees to produce 1million MW h of electric energy. Another advantage of this project is its geographical location on the crucial plate River, which is a channel to the U.S., European and Asian markets