Uruguay unveils $4 bn Portucel investment

MONTEVIDEO: Uruguay's president says a Portuguese paper company will spend more than US$4 billion to build a pulp plant and port in Uruguay.

President Tabare Vasquez says the investment from Portucel Soporcel Group will stem contagion from the world financial crisis.

The company plans to build a paper and cellulose plant and a deep-water port in an as-yet undisclosed location. A spokesman could not be reached for comment.

Vazquez on Monday said Uruguay is ``concerned but not alarmed'' by the financial crisis. It could tap some of its US$9 billion in currency reserves to ease credit and boost lending.

The head of Uruguay's meat packaging industry has blamed the crisis for crippling beef exports, as Russia and the E.U. suspended shipments.