URUGUAY – Uruguay’s Ministry of Environment has informed UPM that it has imposed a sanction of approximately US$188,000 (4,500 Unidades Reajustables*) on the company for non-compliance with the environmental management plan for the UPM Paso de los Toros pulp mill.
The sanction is linked to an incident that took place in August 2023 when a chemical leak occurred at the mill site.
This leak caused an unusual color change in the water and fish mortalities in a creek that runs through the stream, crossing the mill site and surrounding area.
Problems in the stormwater control pond in the mill’s chemical storage and discharge area were the root cause of this leak. As a result of the leak, the creek experienced an increase in sodium hydroxide levels and, consequently, an increase in the pH of the water.
The water quality was also affected at the point where the creek stream flows into the Rio Negro River, although to a lesser extent.
UPM took immediate corrective measures to address the situation and prevent future leaks. The company informed the environmental authorities and local residents about the incident and posted a statement on the UPM Uruguay website.
The pH levels in the affected water bodies returned to normal within days. UPM, in collaboration with the Uruguayan environmental authority DINACEA, conducted a thorough investigation to identify the causes and consequences of the incident.
The company committed to implementing all required actions, including continuous monitoring, following the authorities’ guidelines.
In addition, preventive measures were implemented to avoid future similar incidents. UPM expects possible monetary sanctions that the authorities may impose in accordance with Uruguayan law.
The company stated it deeply regrets this incident and considers it of the utmost importance. UPM maintains rigorous environmental management processes, strict controls, and constant monitoring in all its operations worldwide, and this type of incident is rare in its history.
In a separate development, UPM Raflatac recently announced plans to open a new state-of-the-art slitting and distribution terminal in the Toronto, Canada metropolitan area.
The new facility will improve service and quality to UPM Raflatac’s customers in Eastern Canada and Northeastern U.S., while strengthening relationships in the region.
“We have made significant investments in our production capabilities to meet the demand for self-adhesive paper and film products,” said Morgan Dundas, Sales Director, UPM Raflatac Americas.
“The recent decision to expand our global network of terminals with a brand-new facility in Canada is a testament to our long history of enabling our customers to grow.”
The Toronto area terminal will house the newest generation equipment and a large warehousing space to enable storage of high-quality film and paper laminates, as well as specialty products.
By having a large inventory of products ready to be slit and shipped, UPM Raflatac can offer customers more flexibility, customization, and efficiency in their orders.
This also reduces the risk of stock-outs, delays, and quality issues that may arise from insufficient warehousing capacity.
“UPM Raflatac’s ability to stock more material locally will optimize lead times, enhance service, and help meet the diverse and dynamic needs for our customers in Eastern Canada and Northeastern U.S.,” stated Dundas.
Construction on the new facility is underway. UPM Raflatac expects to begin production by late summer 2024.
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