Botnia's project approved by the boards of IFC and MIGA
The Boards of IFC (International Finance Corporation) and MIGA (Multilateral
Investment Guarantee Agency) have today approved the financing amounting to USD
170 million and the guarantee for up to USD 350 million for Botnia's pulp mill
project in Fray Bentos, Uruguay. The World Bank states in its press release:
"The two organisations, after completing a thorough review of the facts, are
convinced that the mill will generate significant economic benefits for Uruguay
and cause no environmental harm."
"We are pleased that this process has been finalized and that the exhaustive
studies have clearly endorsed the benefits the mill will bring. We hope that
today's decision can contribute to convincing the various stakeholders that the
mill will comply with relevant environmental standards and not compromise the
wellbeing of the inhabitants in the area", states Erkki Varis, President and
CEO of Botnia.
Botnia also welcomes the facilitation of the Spanish king as a possibility to
establish a dialogue between the governments of Uruguay and Argentina to find a
solution to the political conflict arisen around the pulp mill project and
hopes that the mediation will for its part help in clarifying the concerns of
the people in Gualeguaychú, Argentina.
"We are willing to contribute to this facilitation and assist the Uruguayan
government in solving the conflict with Argentina", says Erkki Varis, President
and CEO of Botnia. "We have a strong commitment to the Fray Bentos project, and
have promised our long-term presence in the area to both Uruguay and Fray
Botnia wants to emphasize that according to the final Cumulative Impact Study
and the experts' report (Hatfield), both commissioned by IFC, the mill will not
harm the environment or the present livelihoods in the area, but will have
significant positive socio-economic impacts in the entire area. Additionally,
Botnia has announced its willingness to treat the municipal sewage water from
the city of Fray Bentos in its effluent treatment plant as well as burn the
black liquor from the Pamer pulp mill situated in the nearby city of Mercedes
in its recovery boiler. According to the Hatfield report, these measures will
contribute to improve the quality of the water in the river Uruguay from its
For additional information, please contact Mr. Ville Jaakonsalo, Senior Vice
President, Finance, tel. +358 500 881070 or Mr. Marko Janhunen, Vice President,
Communications and Public Relations, Uruguay project, tel. +358 50 5900047.
For more information on IFC, for the Cumulative Impact Study and the experts'
report, please visit:
Metsä Fibre is a leading producer of bioproducts and bioenergy. The company’s pulp brand is Botnia and the sawn timber brand is Metsä Nordic Timber. The company’s bleached softwood and birch pulp grades have been developed for the production of high-quality board, tissue and printing paper and speciality products. The main applications for spruce and pine sawn timber are products for construction and interior decoration as well as window and door joinery and raw material for packaging industry. Currently employing approximately 1 200 people, the company’s sales totalled EUR 1.9 billion in 2017. Metsä Fibre is part of Metsä Group.