Stora Enso Global Responsibility Report 2012 - GlobeNewswire

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a deep sea wharf and a river barge wharf, bioenergy production, eucalyptus
plantations and a state-of-the-art tree nursery. Total investments
amount to approximately EUR 1.4 billion. The mill is estimated to start
up mid-year 2013.
Montes del Plata’s sustainability approach is based on the company’s
own management policy and values, which are in line with Stora Enso’s
Global Responsibility approach, as well as international standards and
principles including the UN Global Compact, which our joint venture
signed in 2010.
Montes del Plata in numbers
31 Dec 2012
Employment
Montes del Plata own employees 585
Contractors’ employees 1 107
Construction workers at the mill site 5 603
Number of local suppliers¹ 1 493
Agroforestry activities
Partner farmers in Forest Producer Programme 149
Honey producers on the company’s land 30
Number of cattle farmers on the company’s land 239
Hectares of company’s land in cattle grazing 167 279
Roads, construction or maintenance
Extension of Route 55 (km) 12
Smaller local roads near the mill site (km) 18
Forestry roads (km) 150
Total investment in roads during the year (EUR million)2 1.4
Social programmes
Investment in social programmes (EUR million)2 0.6
Number of beneficiary projects 16
1 local suppliers in the Department of Colonia where Montes del Plata Mill is
situated.
2 converted from USD using the exchange rate EUR/USD 1.3194.
Better integration
Montes del Plata is one of the biggest landowners in Uruguay. Our
Production Integration Programme aims to get local farmers involved
in our tree plantations. Some 160 000 hectares of land are rented
out to local farmers for cattle grazing. Honey, dairy and beef production
cooperatives also use the land in partnership with Montes del
Plata. According to a study conducted in 2012, approximately 47% of
these 274 farmers run small-scale family farms or cooperatives. The
company’s Good Neighbour Programme promotes open stakeholder
dialogue and keeps local inhabitants informed about the company’s
operations, such as planting and harvesting.
During 2012 Montes del Plata recruited 26 young people aged 18–25
for the company’s Young Talents programme. More than 120 applicants
were interviewed. The programme aims to give local young people training
and opportunities. Montes del Plata also works with local suppliers,
provides training on forming small enterprises, and runs a forum for local
development initiatives involving many local stakeholders.
Addressing stakeholder concerns
With as many as 6 000 workers employed in the pulp mill construction
project during peak periods, potential negative impacts are understandably
a concern to local inhabitants. Montes del Plata is working together
with the local community, the authorities and various organisations to
mitigate such impacts by running programmes to improve traffic safety,
promote healthy living habits, and combat alcohol and drug abuse,
domestic violence, prostitution and sexually transmitted diseases.
Special camps have been built in the town of Carmelo and at the mill
site to accommodate almost 2 600 workers. Free-time activities are
organised for workers, and social workers are also employed to further
mitigate any possible negative impacts. Some 150 new houses for construction
workers have been built in the nearby town of Colonia. After
the building work finishes in 2013, these houses will be donated to local
communities for social housing needs. All workers coming from areas
within 100 kilometres are transported to the site every day, so they can
keep on living with their families.
One major concern at the Montes del Plata construction site has been
strikes. During 2012 there were altogether 87 days of strikes at the site
involving some or all of the construction workers. Some of these strikes
were not related to Montes del Plata, but to accidents that had taken
place on other construction sites in Uruguay, since whenever a serious
accident happens at any site, the construction workers’ union calls
out workers at all sites across Uruguay for one day. Montes del Plata
has from the very beginning of the project maintained an open and
transparent dialogue with local union representatives, and problematic
issues have been resolved through mutual negotiations. Montes del
Plata has now agreed to train more Uruguayan workers to enable them
to complete more demanding tasks at the construction site.
In order to mitigate the impacts of traffic on the local population,
Montes del Plata will transport 50% of the pulpwood coming to the
mill along the Uruguay River from Fray Bentos using four barges. Three
of these barges will be built in Uruguay, helping the local shipbuilding
industry, and promoting river transport in general. This will also greatly
reduce the risk of road accidents and benefit the environment by substantially
reducing fuel consumption and emissions.
Montes del Plata is meanwhile working together with local authorities
to build an extension of Route 55 to redirect heavy traffic away from
communities near the mill. In 2012 Montes del Plata also agreed to
start a programme that will provide road safety training for more than
600 truck drivers in cooperation with the Ministry of Transport.
Intensified communications
Montes del Plata conducted an opinion survey in 2012 to find out how
well Uruguayans know the company and what major concerns they
might have. The positive impacts of the project mentioned by interviewees
particularly included benefits related to national employment
and economic development. The stakeholders’ main concerns include
the possible deterioration of roads because of heavy traffic, impacts on
tourism in the area, and possible contamination from the mill.
Stora Enso Global Responsibility Report 2012 21