Why UPM’s sustainable Uruguayan operations give pulp customers a competitive edge
As the global demand for renewable and sustainable raw materials intensifies, UPM Pulp's operations in Uruguay show how to secure a reliable and steady source of wood pulp through responsible forest and plantation management.
Can you imagine life without pulp? Tissues, paper, building materials, and even food, pulp is used in almost every part of our lives. Ensuring a reliable and sustainable source of pulp is critical. But true sustainability isn’t just about preservation; it's about responsible management, renewal, and producing renewable materials that meet the world’s needs.
UPM’s sustainable forest management practices in Uruguay provide a powerful blueprint for how this is done, demonstrating that a commitment to the environment and a reliable supply of essential materials can, and must, go together.
“Our customers want sustainability they can trust. In Uruguay, UPM delivers, combining responsible forestry with reliable, high-quality materials that meet today’s demands without compromising tomorrow,” explains Jean-François Royer, Senior Sales Manager at UPM Pulp.
A system backed by world-class verification
In Uruguay, the company’s model is built on establishing eucalyptus plantations on land with high suitability for forestry, primarily on heavily modified natural grasslands with low agricultural productivity. These lands are identified independently by the Uruguayan Government as ‘forestry priority soils’.
UPM Forestal Oriental owns approximately 329,000 hectares of land in Uruguay, of which around 40% is dedicated to conservation, cattle grazing, and infrastructure, with about 60% used for production plantations. This carefully thought-out use ensures that production is integrated into the existing environment, rather than replacing it.
UPM’s operations are underpinned by world-class certification. The plantations are certified under the stringent international standards of the Forest Stewardship Council™ (FSC™) and the Program for the Endorsement of Forest Certification (PEFC). These certifications represent a verifiable promise of environmentally sound, socially beneficial, and economically viable management.
“Trust is everything. Certifications like FSC™ and PEFC give our customers the confidence that UPM’s pulp is responsibly sourced and fully traceable – reducing risk and reinforcing the integrity of their supply chains,” adds Royer.
Ensuring biodiversity and protecting natural resources
A key aspect of UPM’s model of sustainable forest management involves actively protecting and enhancing the natural ecosystems that make up the landscape. In Uruguay, UPM's environmental management strategy includes creating a network of 37 dedicated reserve areas. These reserves cover an impressive 70,195 hectares and are managed to protect everything from sensitive habitats to specific species.
The results of these efforts are striking. UPM’s lands are home to a remarkable diversity of life, including 74% of Uruguay's native plant species and 64% of its animal species. A pilot project launched in collaboration with the Clemente Estable Institute of Biological Research for using environmental DNA (eDNA) as a biodiversity monitoring tool has already led to the discovery of 24 species previously unrecorded in the protected area, including a new fish species, Megaleporinus piavussu (Boga), which is a significant addition to Uruguayan fauna.
Additionally, the company undertakes regular checks of essential resources like water. Long-term hydrological monitoring programs indicate that the mature plantations use water efficiently and have not caused negative impacts on water availability. Crucially, analysis of water samples shows no measurable amounts of agrochemicals, reinforcing the integrity of the ecosystem.
A true partnership with Uruguay and its people
These types of sustainable practices have led to forestry becoming a leading sector in the Uruguayan economy, contributing to 6% of GDP. UPM and its contractors have created over 7,000 direct and 10,000 indirect jobs in the country, leading to increased opportunities and economic development, even in the remote interior.
A key pillar of this is the Fomento Forestry Program, a partnership model that integrates forestry with traditional farming. UPM works with over 900 associated rural producers, providing access to the most suitable technology and genetics to help them diversify their income while creating shade and shelter for livestock.
Furthermore, the biomass from UPM’s Fray Bentos and Paso de los Toros mills is used to power their production processes with surplus energy redirected towards the Uruguayan national grid, accounting for 20% of the country’s total energy production.
Taken together, these initiatives create a truly integrated and mutually beneficial relationship with local communities and the national economy.
“Long-term partnerships like ours in Uruguay resonate deeply with our customers. They’re not just buying pulp – they’re investing in supply chains that reflect their own ESG commitments,” explains Royer. “When we support local communities and promote biodiversity, our customers see that impact as part of their own story.”
The competitive advantage of sustainability
With today's complex and often opaque supply chains, having a transparent and dependable source of materials is essential. Uruguay emerges as a standout choice in South America for its commitment to economic and environmental sustainability. The country boasts a strong record of political and social stability, robust democratic indicators, and transparent government policies – it is ranked 13thbest globally on Transparency International’s corruption rankings of 180 countriess. Additionally, its national legal framework actively promotes afforestation. These factors are key reasons why UPM Pulp selected Uruguay as its source of eucalyptus pulp.
The sheer scale of the company’s operations in the region, including the UPM Paso de los Toros mill with a production capacity of 2.1 million tons annually and the Fray Bentos mill with a production capacity of 1.3 million tons annually, ensures a secure and consistent supply of much-needed pulp. UPM in Uruguay exemplifies a unique model of stability, transparency, and long-term reliability that resonates strongly with businesses looking for dependable partners.
“Customers are increasingly seeking more information about our unique pulp from Uruguay,” says Royer. “UPM’s sustainability credentials and actions build trust and set us apart in a competitive market”.
Enquiries are coming in from various parts of the world, adds Royer. This includes North America, where demand for high-quality eucalyptus pulp has seen UPM Pulp rapidly rise to become the region’s second-largest eucalyptus pulp provider.
With a foundation of robust environmental and social governance, a rigorous Code of Conduct that guides every decision, and a history of successful operation, UPM Pulp is a partner that can support businesses in achieving their sustainability goals while reinforcing their brand value in an increasingly sustainability-focused market.
"UPM’s scale in Uruguay gives our customers confidence to scale their business with a partner committed to long-term sustainability," emphasizes Royer.