KEY SECTOR OF THE URUGUAYAN ECONOMY

/// The Forestry Sector will account for 17% of exports, and 4,5% of Uruguayan´s GDP

Source: Uruguay XXI based on data furnished by the Central Bank of Uruguay

AVAILABILITY OF FORESTRY LAND

• Same latitude as the main forestry enterprises in the southern hemisphere. • Climate and soil of international competitiveness • 4 million hectares declared as forest priority • The forestry area (according to forestry national survey is 1.000.000 hectares.

AVAILABILITY OF FORESTRY LAND

/// High-grade wood for cellulose pulp and the manufacture of solid wood products

Source: DNI, MIEM – 2012. First Report of the Wood Products Export Promotion Program - Forest and Wood Sector Council.

AVAILABILITY OF FORESTRY LAND

Source: DNI, MIEM – 2012. First Report of the Wood Products Export Promotion Program - Forest and Wood Sector Council.

Pine Tree

Eucaliptus

FORESTRY LAW

/// Law nº 15.939 forests declared as “yielding” included in “quality wood projects” enjoy the following tax benefits. /// Income derived from its exploitation shall not be considered for purposes of IRAE /// Shall not be considered for IP purposes /// Exoneration on the rural property tax

CASE OF SUCCESS // MONTES DEL PLATA

• Stora Enso is a Finnish-Swedish company present in Uruguay Since 2004

• Both Companies have land base of aprox 250,000he (1.4% of the national territory)

• Montes del plata’s investment in the construction of a plant in Conchillas, which produces 1,300,000 tons of cellulose pulp, amounts to USD 1.900 million. The overall invested amount in the project was of USD 2.500 million.

• Produces 150-200MW power, 90MW for own consumption

• On a daily basis about 700 people work at the plant and in the entire production chain about 5,000 people are employed on a permanent basis.

CASE OF SUCCESS // WEYERHOUSER

• Present since 1996; logging operations began in 2005 • In 2016 It has 130,000 he : 50% was forested with pine, eucalyptus

and poplar

• The plywood plant exported USD 65million to Europe, Latin America and USA in 2015

• 690 employees in Uruguay (1.800 including contractors)

• Investment = USD 90 million. Top exemptions = USD 125 million (tax on income, assets. Fees , VAT)

• The company investing in renewable energies (electricity and fuel) wood products engineering and paneling, and currently has a power generation capacity of 12 MW

CASE OF SUCCESS // UPM

• UPM (Finland) is one of the largest producers of pulp globally. It has 225,000 he of land, of which 135,000 he are cultivated plantations.

• The construction of its plant in Uruguay was the largest investment in the history of the country (more than U$ S 1,100 million 1.6% of GDP) up to the date. (After which Montes del Plata’s investment would take place, becoming the major investment in the country’s history.)

• The plant has an annual production capacity of 1.3 million tons of pulp from eucalyptus with free chlorine technology, exported pulp by USD 600 million in 2015.