Economic impact study of UPM operations in Uruguay

We support UPM in the study of the economic impact of its current operations and the expected impact of the second cellulose plant project.

The challenge

To analyze the impact generated by UPM regarding both its own operations and the activities deployed by contractors and suppliers that provide services in forestry operations and in the industrial plant.

The solution

Aspects analyzed included the effects on GDP, employment, exports and tax revenues, as well as the characteristics of the work processes in the Uruguayan forestry industry. The impact of the construction of a second cellulose plant and the forestry and industrial operations associated with it were studied as well.

In all the studies a value chain approach was adopted to quantify the effects of UPM operations, the activity of its subcontractors and suppliers and the effects of induced demand in towns in the provinces where the forestry activity takes place. The measurements were based on financial information provided by UPM and its contractors, as well as public sources such as the Input-Output Matrix, Supply and Use Tables and the Annual Economic Activity Survey.