Pulp Friction

October 2006 | Political Risk Alert

Uruguay's pulp mill dispute with Argentina took an unexpected turn on 24 October, when the Spanish company Ence announced without any further explanation that it would postpone the construction of its paper pulp mill until 2008. BMI View: Although this raised concerns that the company could abandon its plans for the mill altogether, we believe that Ence will attempt to complete the construction due to economic considerations. Meanwhile, Argentina is likely to mount further opposition against the project

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