Argentina's Government Allows Reopening of Cellulose Processing Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Argentine government officials have authorized a pulp mill in Puerto Piray, in the Misiones province, to resume operations in November 2009. The mill is located along the Parana River, which separates Argentina from Paraguay.

The pulp mill is owned and operated by Trabajo e Industria de Puerto Piray Limitada (Puerto Piray), a cooperative of 197 workers who were employed at the facility before it was shut down in mid-2008. The government has granted the cooperative a $780,000 subsidy for the plant to restart operations.

Wood and other raw materials that remained when the plant was closed will be used to begin the pulp manufacturing. Paraguayan environmentalists claim that the reopening of the plant is a threat to the local ecosystem and human health. They also argue that because the cellulose technology used by the pulp manufacturers is obsolete, pollutants and toxic waste could be released into the Parana River.

Plant officials said that, during the first months, pollution will be reduced to 60% and that they already had applied for a loan to make improvements to reduce the remaining pollution. However, for the time being, no investments will be made to purchase new equipment.

The pulp mill began operations in 1974 and was run by Benfide SA (Buenos Aires, Argentina). In June 2008, the mill was closed due to the economic crisis that led to a decrease in pulp demand and prices. After reopening in November, the plant is expected to have a production capacity of 700 tons of pulp per year. Approximately 200 people will work at the plant.

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