HELSINKI, July 23 (Xinhua) -- Finnish forestry company UPM announced on Tuesday to invest 2.7 billion U.S. dollars to construct a pulp mill near Paso de los Toros, central Uruguay.

The initial annual production capacity of the greenfield eucalyptus pulp mill will be 2.1 million tons.

In addition, UPM will invest 350 million U.S. dollars in port operations in Montevideo, the capital city of Uruguay, and local facilities in Paso de los Toros. The new factory is scheduled to operate in the second half of 2022.

The investment will increase the company's current pulp capacity by more than 50 percent, resulting in a step change in the scale of UPM's pulp business as well as in its future earnings, said the company.

The company said that the long-term demand outlook of pulp is promising, especially in Asia. The annual growth of pulp demand in the global market is estimated to be around 3 percent.

The construction of the mill is expected to exert a significant impact on the economy of Uruguay. It is estimated to increase the country's gross national product by about 2 percent, According to UPM. Enditem

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