Forestry & Paper

In Uruguay, the wood and paper industry developed significantly during the 1990s. Over the last few years, investments in the sector have increased greatly as a consequence of local and foreign investor presence. Since the last decade, more than USD 750 million have been invested in the forestry sector. Roundwood and chip exports for cellulose pulp production are the main commercialized products and European Union countries are the major markets.

Uruguay has 3.6 million hectares of land suitable for forestry and has excellent water availability. The country enjoys natural advantages for forestry production and a strong export promotion policy. Additionally, the country offers tax exemptions for plantations, forestry companies, capital goods and supplies and a corporate structure for forestry exploitation.

The Uruguayan forestry sector is undergoing a period of industrial and commercial growth, driven largely by foreign investment. Currently, one cellulose pulp mill is under construction and another is in planning stages. In addition, a specialized wood port and chipping mill are in the works. In the coming years, other industrial undertakings are forecasted to join existing efforts.

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