New unity of Portucel should be located in Latin America

The Portucel based, yesterday, the first stone of the new paper mill in Setúbal, and Pedro Pereira Queiroz took the opportunity to reveal it is considering building a new production unit, an investment that could amount to billions of euros, which , according to analysts of the BIS, to be located in Latin America and not in Portugal
The Portucel based, yesterday, the first stone of the new paper mill in Setúbal, and Pedro Pereira Queiroz took the opportunity to reveal it is considering building a new production unit, an investment that could amount to billions of euros, which , according to analysts of the BIS, to be located in Latin America and not in Portugal.

The "chairman" of Portucel assumed with the Government, a commitment to invest 1.5 billion dollars (around 1,000 million euros) in a new manufactures in Portugal, conditioning the location of the new unit in the national territory to the existence of matter - press (eucalyptus) enough to feed an investment of this scale.

Portugal, Africa and South America are some of the possible locations, which in the opinion of the team of "research" of a new unit of BPI Portucel should be installed in a "country in Latin America."

Analysts contend with the view that the Latin American market is the "most competitive in the world" and the pace of growth of eucalyptus be faster than in the Iberian Peninsula. "

"Some countries such as Uruguay have to offer several advantages, such as exemption from taxes, which can power the return of a potential investment," added the analysts of BPI.

The investment bank kept unchanged its recommendation from "buy" to the actions of Portucel [Cot], and the price target of 3.45 euros. This "target" confers on securities of the company of pulp and paper a potential recovery of 65.8% compared to the current price of 2.08 euros. The actions followed a value 0.48%.