UPM-Biofore-Magazine-2-2019

Jobs, jobs, jobs Deloitte estimates that the completed mill will annually contribute USD 1.35 billion to the economy, or about 2% of the country’s annual GDP. Of that total amount, UPMPaso de los Toros will generate directly (including its operations and those of contractors over whomUPMhas direct oversight) USD 900 million per year, with the rest coming from indirect and induced impacts. “The increase in regional GDP is expected to be 10%,” says Vidalín. “It will generate income for the city of Durazno, but also for many of the other cities and the east of the province.” The economic impacts will not be limited to just Durazno. UPM is expected to pay USD 105 million in taxes each year and make USD 66 million in social security contributions. These payments will be re-distributed throughout Uruguay. Overall, the new pulp mill is expected to create about 10,000 permanent full-time jobs across the country. These will include about 600 people employed directly by UPM and 4,000 associated jobs, through direct contractors, including plant maintenance workers, truck drivers and forestry workers, among others. An additional 6,000 full-time jobs are expected to be created indirectly, along the value chain and in the whole country. According to Deloitte’s report the project will have several positive externalities, contributing significantly to job creation and the development of the area, which comprises some of the departments that perform poorly in several socioeconomic and development indicators. The ripple-effect on social infrastructure One of the major challenges facing Vidalín and his fellow Duraznenses is the need to improve many local services. About 5,000 new workers are expected to move into Pueblo Centenario and the nearby Paso de los Toros, both of which currently have a combined population of 15,000 people. Vidalín said that his administration is already in talks to expand healthcare services in the province and UPMhas agreed to help invest in housing projects. Álvaro García , Director of the Planning and Budget Office of Uruguay (OPP), will work with UPM and local governments to manage

THE ECONOMIC IMPACTS of the mill project will be substantial. UPM invests USD 3 billion in building the pulp mill, a pulp terminal at the port of Montevideo and improving the local infrastructure. This will be matched by an estimated USD 1.2 billion public investment – from upgrading roads and bridges as well as connecting the country’s capital to Durazno by rail.

14 | UPM BIOFORE BEYOND FOSSILS