Spain's Ence announces new Uruguay plant location
Source: Reuters
(Recasts lead, adds quotes, background) BUENOS AIRES, Dec 12 (Reuters) - Spanish paper pulp company Ence announced on Tuesday a new location for its planned Uruguay plant after Argentina complained it would harm tourism and the environment at its original site on the Argentina-Uruguay border. Argentina's government said it was pleased with the new location, which Ence <ENC.MC> President Juan Luis Arregui and Argentine Cabinet Chief Alberto Fernandez revealed at a joint news conference in Buenos Aires. "The Argentine government wants to express its sincere gratitude to Ence for the attitude it has taken," Fernandez said. "The plant definitely will have the best production standards and the environmental impact will be minimal, well below the levels accepted by Uruguay's national environmental body," Fernandez said. The new site is at Punta Pereira near the north shore of the wide Rio de la Plata river, about 37 miles (60 km) downstream from where the Uruguay River feeds into the Rio de la Plata. It is also downstream from the original site at Fray Bentos on the Uruguay River. Ence said in October it would put the 930-million-euro plant somewhere other than Fray Bentos, but still in Uruguay. At the time it said the relocation did not have to do with a bitter dispute between Argentina and Uruguay over the plant. Finnish company Metsa-Botnia is still building its own pulp plant at Fray Bentos, and the construction has soured relations between Argentina and Uruguay. On Tuesday protesters from the Argentine city of Gualeguaychu, across the Uruguay River from Fray Bentos, marched and protested in Buenos Aires against the Botnia plant. Ence's Arregui downplayed Argentine concerns over the $1 billion Finnish plant in Fray Bentos. Both plants represent a major investment in Uruguay. "Personally I don't believe Botnia will pollute at all," he said at the news conference. Residents of Gualeguaychu have blocked a main bridge leading to Uruguay during many weekends this year to protest the Botnia plant, which can be seen on the other side of the Uruguay River. The Argentine government is concerned about contamination and the plant's impact on tourism and fishing, while Uruguay insists the project is environmentally safe. Both sides have turned to an international court and, with no end to the conflict in sight and desperation rising, Uruguay last week sent troops to the Botnia plant, fearing sabotage by protesters.
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