May 10, 2006. /Lesprom Network/. Finnish paper giant Metsa Botnia will continue construction of its controversial paper plant in Fray Bentos, on the Argentine-Uruguayan border, although Argentina failed a lawsuit against Uruguay at the International Court of The Hague on May 4, 2006, according to Invertia. The company does not see reasons for suspending the construction works, Botnia's spokesperson Annikki Rintala said. Argentina's move does not threaten Botnia's project, as the company has obtained an environmental permit for the plant construction in February 2005, Ms. Rintala added. Argentina's demand in The Hague claims the suspension of construction works by Botnia, and by Spanish paper producer Ence, both of them building two plants in Fray Bentos with a combined investments of $1.8 billion. Argentina claims that authorizing the plants construction Uruguay had violated the River Uruguay Treaty from 1975 as it poses a danger for environment. Botnia plans to invest some $1.0 billion in its plant and to produce some one million tonnes of pulp annually as of the second half of 2007. Uruguay defends the plants construction as they will become the largest ever private investment in the country. Uruguay has also filed a counter demand at the International Court of the Hague against Argentina, and has protested with the authorities of the Mercosur trade block, which includes Argentina, Brazil, Uruguay and Paraguay.