UPM inaugurated its Paso de los Toros pulp mill in the department of Durazno in Central Uruguay. The inauguration event was attended by the President of Uruguay Luis Lacalle Pou, several ministers and representatives of other stakeholders who have participated in the successful execution of UPM’s growth project in Uruguay. The UPM Paso de los Toros pulp mill has an annual production capacity of 2.1 million tonnes of eucalyptus pulp. The mill represents the latest and best available technology. It is energy efficient with minimal environmental impacts and optimised maintenance. With an increase of more than 50% in UPM’s current pulp capacity, this growth investment creates a step change in the scale of UPM’s pulp business and future earnings. It also has a significant impact on Uruguay’s economy and creates significant opportunities for the country’s people and communities.
Norske Skog Skogn and Statkraft have entered into a new long-term industrial energy agreement, which together with previous contracts, will secure large parts of the mill’s energy supply on competitive terms until 2030.
- This agreement will give the Skogn mill stable energy supply at predictable and acceptable prices. The agreement contributes to secure jobs and the long-term competitiveness of Skogn. At the same time, this is important for the forest sector in Central Norway, says Sven Ombudstvedt, CEO of Norske Skog and chairman of Norske Skog Skogn AS.
Previously, Norske Skog Skogn had an energy contract with Statkraft corresponding to annual deliveries of around 0.9 TWh, which expires at the end of 2026. With the new energy contract, Norske Skog Skogn will secure almost the entire energy demand up to 31 December 2028, as well as parts of the demand until 2030. The new agreement with Statkraft will ensure the delivery of a total of 2.9 TWh over the contract period, and will enter into effect on 1 January 2024. To reduce currency exposure, the agreement has been entered into in euros. With this, the Norske Skog group is well covered with energy agreements in Norway.
- We are pleased to conclude another contract with the industry, which confirms that Statkraft offers competitive terms and is still a preferred supplier of energy to Norwegian industry, says Hallvard Granheim, Executive Vice President for Markets at Statkraft.