Cellulose plants are gathering pace with the first plant in Fray Bentos already in operation. A second plant along the Uruguay River (bordering
Argentina) with its own port is being developed. This project includes the acquisition of 30,000 hectares with existing eucalyptus while already
holding 250,000 Hectares.
Uruguay has tax breaks with all forestation projects, thus many hectares are being planted with the sale of wood by-products guaranteed.
Forestation is a long term project, however as wood maintains its value as a high demand commodity, returns are consistent. Startup costs
attribute to between 60 and 65% of the expenditure with land having the highest %.
Eucalyptus is the tree of choice for the following reasons:
» It adapts easily to the regional climate
» The wood is in high demand demanded by the paper/cellulose factories that have been in operation in Uruguay since 2008.
» It allows up to three growth periods without replanting.
