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Montevideo (AFP) – Finnish company UPM said Tuesday it will go ahead with plans to invest more than $3 billion to build a pulp plant in Uruguay.

It said construction will start in the second half of 2022.

The company will spend $2.7 billion to set up the plant itself and $350 million on river port and logistical facilities.

The company already operates one such plant in Uruguay. It was highly contentious because it is located on the Uruguay River, which forms the border with Argentina, which sued over the potential fallout to the waterway.

The International Court of Justice sided with Uruguay and declined to halt construction of that facility.

Uruguay’s left-leaning government negotiated with UPM over the proposed second plant.

Terms of these talks were never disclosed.

Environmentalists have raised concerns over the effect on the river and opposition parties have questioned what economic and labor concessions the company may have granted to UPM.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.