Press Release

ENCE ANNOUNCES WITHDRAWAL FROM CONFLICTUAL PAPERMILL INVESTMENT IN FRAY BENTOS URUGUAY!

Uruguay. September 21, 2006. Rumors were confirmed that ENCE, one of the controversial pulp mills being constructed in Fray Bentos Uruguay, on the Argentine border, will abandon its pulp mill investments at the present location.

Alluding to the open conflict between Argentina and Uruguay, as its principle source of concern over its future operations in Uruguay, ENCE announced it is still uncertain where it will site its mill, but it will not continue its venture in the border town.

The local mayor of Rio Negro Uruguay, Omar Lafluf claimed that ENCE cited as its principle concerns, pressures from the Argentine population of Gualeguaychú and its fear that international banks, including the IFC would not give needed loans to the investment under current conditions and site locations.

For more information:

Jorge Daniel Taillant

Center for Human Rights and Environment (CEDHA)

jdtaillant@cedha.org.ar

54 9 116 182 3172


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