1 Uruguay – Additional Information September 2009
2 Case Studies Successful Investments September 2009
3 Weyerhaeuser • US-based company present in Uruguay since 1996; harvesting operations began in 2005. • Weyerhaeuser Uruguay’s total land base as of 2008 is 140,000 ha (346,000 acres), or 0,8% of the national territory. • Of these 55,000 ha (136,000 acres) are planted with pine, eucalyptus and poplar. • The plywood plant exported in 2008 USD 28 MM to Europe, Latin America and the United States.
4 Weyerhaeuser (2) • At present, Weyerhaeuser has 450 employees in Uruguay, and 1,600 when including contractors. • The company recently announced new industrial investments in renewable energies (power generation and fuels), engineered wood products and lumber.
5 Weyerhaeuser: Tax Incentives Awarded • The company was awarded investment promotion incentives in 1999, 2004 and 2008. • 2008 project’s objectives: extension of the plywood production facility in Tacuarembó and addition of a new energy source based on wood residues and its sub products. • Investment: USD 90 MM. • Maximum exemption: USD 125 MM (corporate income tax, wealth tax, import taxes and VAT).
6 Tata Consultancy Services • 2002: TCS chose Uruguay to set up its offshore global development center for Spanish-speaking customers (nearshore IT services, solutions from Microsoft, SAP, Business Intelligence and Quality Consulting) • Uruguay represents a strong platform for TCS in the development, financial, legal and training areas, having at present over 800 employees. • TCS have their regional training center in Montevideo. • Testimonial: “Apart from security and good weather conditions in Uruguay, the advantages it offers as an outsourcing centre include a well-educated human resource and a time zone opposite to that of India, enabling a 24x7 service for customers.”
7 Botnia / UPM • Botnia runs a cellulose plant at their own FTZ; operations started in 2007. • It also owns 180,000 ha. (445,000 acres) of land , of which 60% are cultivated plantations, all FSC-certified, an investment that Shell and Finnish firm UPM started in 1990. • At over USD 1,200 MM , the plant was Uruguay’s largest investment ever, having an impact of 1.6% on Uruguay’s GDP. To this we must add the investment by chemical company Kemira.
8 Botnia / UPM (2) • Also largest investment by a Finnish private company outside Finland, and the most efficient cellulose plant in the world. • The plant has a capacity of 1.1 million tons of eucalyptus pulp per year, with chlorine- free technology. • Exports in 2008: USD 762 MM. 4,000 direct employees and more than 3,700 indirect. • Botnia was acquired by UPM in 2009.
9 Sabre • Present in Uruguay since 2004, operating from a tax- free business park. • Operations in Montevideo provide world-class customer support to airlines, travel agencies and hotels. Other corporate functions have also been transferred to Uruguay. • With 880 employees, representing approximately 10% of Sabre’s global workforce, Uruguay is the second largest location for the company after Dallas, TX. • Sabre’s Uruguay operation takes advantage of local language skills in several languages and also of Uruguay’s time zone, in -between North America and Europe.
10 NZ Farming Systems Uruguay • Ongoing investment by New Zealand dairy company NZ Farming Systems Uruguay. • At present, 26 dairy farms, aiming at 49 by 2012. • Investment so far, over USD 200 MM. • 1 million hectares (2,5 million acres) of forest plantations, i.e. 6% of the territory.
11 Stora Enso / Arauco • Stora Enso is a Swedish/Finnish company, present in Uruguay since 2004. • In 2009 Stora Enso and Chilean company Arauco joined forces to acquire the majority of Spanish company Ence’s operations in Uruguay for USD 344 MM, and thus accelerate their projects. • The two companies have a land base of approximately 250.000 ha (618,000 acres), or 1,4% of the national territory. • Stora Enso and Arauco are now analyzing the potential location for the construction of a USD 1 billion+ pulp mill in Uruguay.
12 Pepsi • Present in Uruguay since 1956. • In 1993 a plant in Colonia’s Free Zone started to manufacture Pepsi concentrate for export. • The concentrate plant exported in 2008 USD 400 MM to Latin American countries, being the second largest exporter from Uruguayan territory. • Pepsico Uruguay produces 21% of the concentrate utilized outside of the United States.
13 UME (Uruguay Mineral Exploration) • UME is a gold production and exploration company incorporated in Canada. • UME operates the only producing gold mine in Uruguay and has assembled an exploration portfolio of gold, diamonds and base metal prospects. • Operations started in 2002. Current N° of Employees: 396. • Activity: Exploration, extraction and processing of gold mineral. • Project that applied for tax exemptions: the objective was to be able to maintain the production and sales over a five years period. • Investment: USD 5 MM. Maximum exemption: USD 6 MM (corporate income tax, wealth tax, import duties and VAT).
14 Conrad Resort & Casino (Hilton Hotels Corporation) • Activity: Hotel and casino in Punta del Este. • Operations started in 1997. • Project that applied for tax exemptions : the objective was the renovation and improvement of the slots machines. • Investment: USD 4 MM. • Maximum exemption: USD 4.2 MM (corporate income tax, wealth tax, import duties and VAT)
15 Parque de las Ciencias Megapharma • The “Sciences Park” will be a life sciences and technology business park, targeting industrial projects, logistics and services. • Awarded FTZ status in September 2009. • Funded by German investors and developed by Megapharma, a strategic alliance of five pharma companies, including Roemmers. • Focus on high-value added sectors such as life sciences (e.g. pharmaceutics, cosmetics, bio-technologies, veterinary, phytosanitary & medical devices) and technology (e.g. software, electronics, robotics.)
16 Parque de las Ciencias Megapharma • The initial investment will be USD 93 MM, in two steps, with a plant of 40,000 m2. • It will generate 750 direct jobs when operational. • At this location, Megapharma will produce 60 MM pharmaceutical units, transferring the production of 14 Latin American countries to Uruguay. • Other companies will be able to join the FTZ / business park.
17 Uruguay - Specific Opportunities and Recent Developments September 2009
18 Roads and Bridges OPEN TO PRIVATE PPP PROPOSALS: • CVU holds the concession of 1,500km (930mi) of highways and bridges. • Currently 100% State-owned. • Capex 2008/10: USD 265 MM. • Financed through securitization of future toll collections. www.cvu.com.uy
19 Roads and Bridges (2) BUSINESS OPORTUNITIES: 1) Financing 2) Roadworks 3) Management of toll collection system 4) Roadside assistance www.cvu.com.uy
20 Railroads OPEN TO PRIVATE PPP PROPOSALS: • AFE, a state-owned entity, runs Uruguay’s railroads. • CFU, also state-owned, was given the concession to build, maintain and streamline 1,000km (620mi) of AFE’s railroad system.
21 Railroads (2) BUSINESS OPPORTUNITIES: 1) Financing 2) Technical assistance, consulting 3) Construction 4) Supply railcars and specific supplies
22 Ports Ports of Uruguay: 1. Montevideo 2. Nueva Palmira 7 3. Juan Lacaze 4. Colonia 6 5. Fray Bentos 5 6. Paysandú 7. Salto 4 3 2 8. La Paloma 8 1
23 Ports (2) Program of modernization of the port of Montevideo: expansion of port Infrastructure • New container terminal. • Capurro Port project: 2 fishing terminals. • Wood chips terminal. “Dry port” in Rivera (north of the country)
24 Ports (3) 2010 Planned Investments 2011 Montevideo 2010 2009
25 Ports (4) BUSINESS OPPORTUNITIES: 1) Regional Logistics Center 2) Financing 3) Construction 4) Dredging 5) Services and operation 6) Fishing and wood products companies
26 Water and Waste Water BUSINESS OPPORTUNITIES: Construction of waste water treatment plants in Colonia, Mercedes and Artigas departments. Construction of water and waste water project for the Maldonado – Punta del Este system. Water and waste water national plan, with a medium term investment of more than 700 MM USD.
27 Montevideo, Capital City Municipality of Montevideo 1 BUSINESS OPPORTUNITIES 1. Development opportunities for Punta Carretas area. 2. Buceo Port, seafood market and urban park. 2 3. Montevideo Bay coastal sector, port, towers, services. 4. Urban Mobility Plan, construction of segregated public transport lanes. 5. Development of industrial parks. 3 5 4
28 Industrial Parks CHARACTERISTICS: Projects in process: • Pando Industrial Park. • Pharmaceutical Industrial Park. • Other projects in Montevideo, Salto, Colonia, Maldonado. Project in place: • Zona Este Industrial Park. BUSINESS OPPORTUNITIES: 1) Construction and financing. 2) Management of industrial parks. 3) Opportunities for companies to join clusters.
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