Finnish paper maker Stora Enso will buy 130,000 hectares of forest in Uruguay with Chilean company Arauco, in a purchase valued at €344 million.
The 50-50 deal will guarantee raw materials for a planned pulp mill in the region, Stora said.
"This transaction will secure the strategic raw material supply for a world class pulp mill in Uruguay that we are planning jointly with Arauco," Stora Enso CEO Jouko Karvinen said, but added that construction of a mill was dependent on a feasibility study.