Plantation operations - Forestal Oriental

Forestal Oriental, UPM’s eucalyptus plantation forestry company in Uruguay, is the centre of expertise for UPM’s plantation operations and forms an integral part of the Pulp business area. The plantations are FSC and PEFC certified. Forestal Oriental operates two modern and technologically advanced nurseries.

Forestal Oriental owns approximately 229,000 hectares of land, of which about 60% is planted with eucalyptus. The rest of the land is used for cattle grazing and forestry-related infrastructure or is protected and not used for plantation operations. The annual harvest of pulp wood in these areas currently covers approximately 70% of the demand for wood raw material at the Fray Bentos pulp mill. The remaining 30% is purchased from independent suppliers who have been working in close co-operation with the company for several years.

The company also has a programme, in co-operation with local private landowners, called Fomento. This programme encourages the landowners to diversify their land use with sustainable plantation forestry.

UPM’s growth strategy in market pulp mainly focuses on regions, where the preconditions are favourable for cost-efficient plantation operations.