ENCE announces withdrawal from ECA supported papermill investment in Uruguay

(MercoPress, Montevideo, 22 September 2006) Spain’s ENCE announced Thursday that Uruguay remains a “strategic” player for its pulp industry interests in spite of having cancelled the construction of a pulp mill until a new location is agreed with Uruguay. Ence was planning to build the mill with Spanish ECA CESCE support just across from neighbouring Argentina, next to another mill under construction belonging to Finland’s Botnia, in an area which was being challenged for environmental reasons.