Feb 26, 2006. /Lesprom Network/. Grupo Portucel Soporcel board has decided to go ahead with the construction of a new paper mill, at its Setubal mill site, in an estimated investment of approximately Euro 490 million. This investment will reinforce significantly the group’s competitiveness in the paper market, conferring a leadership position in the European uncoated woodfree fine paper market. This investment will have a strong impact in the Portuguese national and regional economy, namely in terms of job and wealth creation along the eucalyptus forest chain value. It is made by a Portuguese group in a relevant industry for the national economy, with a very significant weight in the country’s GDP and commercial balance: approximately 93% of the group current production is directed to the international market, representing, in 2004, almost 3% of Portuguese exporting goods. The production of the new paper mill will allow to further expand the group market share in the European market and strengthen the commercial position already conquered in the North American market. It allows to reinforce the group commercial strategy of investing in differentiated products, of the highest quality and value added, and to provide the necessary production capacity to satisfy the growing demand for the group products and brands in the market. The new industrial unit will receive the largest and fastest uncoated woodfree paper machine in the world, state of the art equipment, with nominal paper production capacity of 500 thousand tonnes per year. This investment will allow to fully integrate Setubal mill pulp production into paper. As such, total paper production capacity will increase to approximately 1,5 million tonnes per year, reinforcing the group’s position as one of sector key players in Europe and worldwide. This project is included in a development and technological modernization plan as well as an environmental minimization impact plan, already underway, involving a global investment of Euro 900 million. The construction of this unit at Setubal will allow the creation of 355 new highly qualified jobs, half of which will integrate the group labour force. It will also involve hundreds of workers during one year and a half, the time necessary for the construction and the development of the project; at the peak of the mill construction it is estimated that 1200 workers will be involved. This fact gives this investment enormous relevance to Setubal regional economy. The project of this new paper unit is also associated with the installation, in the perimeter of Setubal industrial site, of a new plant of combined cycle CHP with natural gas (80 MW), which will allow to satisfy the new paper mill needs for electric power and steam. This plant will produce important excess capacity of energy that will be supplied to the national grid. It is noteworthy that the whole project will comply with the most demanding environmental standards established in Europe and that the architectural concept as well as the volumetrical aspect of the new mill are idealized to satisfy the Setubal bay natural requirements. The Portucel Soporcel Group, which has resulted from the union of Portucel and Soporcel, is one of the five largest European producers of uncoated woodfree paper. The Portucel Soporcel Group has a productive capacity that exceeds 1 million tonnes of paper and 1.3 million tonnes of pulp, with 138 thousand hectares of forest and an annual turnover of over of Euro 1 000 million.