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Spanish firm says to move Uruguay paper factory

Author: Patricia Avila, Reuters, Published on: 21 September 2006

A Spanish company that planned to build a paper pulp mill in Uruguay said on Thursday it would move the plant to a new location in the country amid an environmental row with neighboring Argentina. "...we are going to move the plant because it's impossible to build two plants [the other one is Botnia's] in Fray Bentos as was planned," Juan Luis Arregui, president of Spain's Ence, told reporters...Arregui said the decision was not related to the environmental conflict...Argentina has fought the $1.7 billion project...saying it will harm the environment and tourism along the border river...A strike also halted Botnia's construction works as local workers opposed a plan by the Finnish firm to contract hundreds of building workers from eastern Europe...The dispute went to the United Nations' highest court, which rejected Argentina's request to suspend the two plants.

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Related companies: ENCE Metsä Fibre Oy (formerly Metsä-Botnia)