Uruguay strengthens its forestry strategy with new foreign investment exceeding US$100 million

Uruguay continues to strengthen its position as a strategic destination for investment in the forestry and timber sector, one of the pillars of its productive development agenda. In this context, New Zealand company Claymark, a global leader in the production and export of high-quality pine products, has been granted promoted project status for an industrial investment exceeding US$100 million.

According to an article published by MercoPress, Uruguay’s Investment Law Enforcement Commission (COMAP) formally approved the project submitted by Claymark Uruguay, the group’s local subsidiary, granting it access to the benefits provided under the country’s investment promotion regime. The initiative is valued at approximately US$103.5 million and will be used to acquire machinery, equipment, and fixed installations required for the company’s operations in Uruguay.

The company based its request for incentives on concrete commitments related to economic and productive development. In this regard, MercoPress reports that Claymark “justified its request for benefits by committing to job creation, increased exports, and the incorporation of clean technology into its production processes.”

Currently owned by the NZ Future Forest Products group, Claymark is New Zealand’s largest manufacturer and exporter of premium pine products. It operates seven industrial plants and employs more than 600 people, with a strong focus on innovation, high quality standards, and sustainability. For its operations in Uruguay, the company plans to deploy state-of-the-art European technology for advanced sawmilling and wood remanufacturing, aiming to strengthen its presence in demanding international markets.

The investment is considered a significant boost for Uruguay’s forestry sector and is supported by a regulatory environment designed to attract long-term capital. Uruguay actively promotes both domestic and foreign investment through Investment Law No. 16,906, administered by COMAP, which provides stability and predictability for investors. The framework applies equally to local and foreign capital and establishes that tax benefits—particularly exemptions from Corporate Income Tax (IRAE)—are directly linked to compliance with indicators aligned with national strategic priorities.

This new project adds to a value proposition that positions Uruguay as a highly competitive destination for forestry and wood-processing investments. The country is internationally recognized for its political, democratic, and social stability, as well as for a solid macroeconomic foundation conducive to successful investments. In addition, Uruguay offers a fully liberalized foreign exchange regime, with no restrictions on the entry or exit of capital or on the transfer of profits, dividends, and interest.

Another major attraction is the abundant availability of pine wood in the northern region of the country, sourced from certified plantations in full operation. Annual supply exceeds three million cubic meters—well above current industrial capacity—creating clear opportunities for companies engaged in primary and secondary mechanical processing.

Uruguay’s strategic location further enhances its appeal, positioning the country as a gateway to the region. Investors benefit from multimodal logistics solutions combining rail, road, and maritime transport, first-class port infrastructure, advanced telecommunications, and an energy matrix largely based on renewable sources, one of the most advanced in Latin America.

The country also shares the same latitude as major forestry developments in the Southern Hemisphere, with climatic and soil conditions comparable to those of Australia, New Zealand, South Africa, Argentina, and Chile, ensuring strong international competitiveness. This environment is reinforced by a stable legal framework specific to the sector, underpinned by Forestry Law No. 15,939, which guarantees best practices aligned with international sustainability standards.

The arrival of investments such as Claymark underscores Uruguay’s potential to advance the productive transformation of its forestry and timber sector, fostering greater value added, quality employment, and international integration based on sustainability, efficiency, and clear rules.