Forestry

The forestry industry is currently undergoing a boom in Uruguay, with great possibilities of further expansion. When in 1987 the Uruguayan government launched a fiscal policy of incentives for forestry activities, the rate of forestation stood at 1500 hectares a year. Today, that figure has gone up to 50 thousand hectares. In total, there are 740 thousand forested hectares. Of that area, 70% contains Eucalyptus, 22% Pine and 8% Willow trees.

This sector continues to grow exponentially with each passing year. It is estimated that by the year 2010 annual exports of byproducts from this industry will be valued at one billion dollars. Projections for the year 2020 double that figure.

Cellulose pulp processing plants, such as the Finnish company Botnia, have chosen Uruguay as the ideal place to invest and operate optimally.

The fertility and moisture conditions of Uruguayan soil are the most favorable for growing the type of eucalyptus that is used for industrial production of top quality paper.

Within the next few years, Uruguay will begin restructuring its railway system, bringing about a huge reduction in domestic transportation costs, thus benefiting forestry production even more.