Progress regarding Botnia's Uruguay pulp mill project


                        
Construction work on Botnia's pulp mill project in Uruguay is currently
progressing as normal. Botnia is expecting an official statement from the
Uruguay government concerning a request that the work be suspended. “We are
waiting for the government's proposal before we take a stand on the issue”,
explains Botnia's President and CEO Erkki Varis. “There are no legal grounds
for suspending construction work. We shall assess the situation once we know
the contents of the government's proposal. We will then be in a position to
make an announcement.” 

All the foundations for the pulp mill buildings have been laid, and work above
ground is continuing with erection of the steel building frames. Approximately
1,500 Uruguayan building workers are currently employed on the site. 

The pulp mill project is extremely important to Uruguay. During the
construction phase in the second half of 2006 it will create jobs for up to
4,500 people. Once in operation, the mill will have a direct employment effect
of some 5,000 and indirectly for around 8,000 people. The pulp mill will boost
Uruguay's gross national product by 1.6 per cent. 

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