WSMR Uruguay

WALL STREETM A R K E T R E S E A R C H

URUGUAY

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2 - WALL STREET MARKET RESEARCH

URUGUAYINTRODUCTION3 Dynamic Latin American Trade Hub5 National Development Agency

Promoting Public-Private Partnerships

BUSINESS & INVESTMENT OPPORTUNITIES7 Strong Macroeconomic Fundamentals

Supporting GDP Growth8 Antel9 Development Bank Highlights

Investment Opportunities10 República AFAP

TRADE & INDUSTRY13 Thriving Industrial Activities Drawing

Foreign Investors15 La Cigale16 Everfit

Managing Editor: Vicky Kox - Project Managers: Kristen Kenny, Pedro Peroni - Journalist: Emily Emerson-Le MoingDesign: Martine Vandervoort, Carine Thaens, Johny Verstegen, Walter Vranken, Dirk Van Bun

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CONTENTS

3.

28.

18.

13.

HEALTH & PHARMACEUTICALS18 Ministry Overseeing Major Reforms in Healthcare Sector20 ANDA21 Asociación Española22 EFICE

INFRASTRUCTURE25 Ministry Offering High-Potential

Concessions for Infrastructure Projects26 Ramón C. Alvarez S.A.

AGRIBUSINESS28 Diversified Agriculture Sector

Stepping Up Exports

TOURISM31 Uruguay: A Natural Tourism Choice33 Don Boutique Hotel34 Hotel L’Auberge34 Radisson Victoria Plaza35 Hertz

WALL STREET MARKET RESEARCH - 3

Dynamic Latin American Trade Hub

Uruguay is also among the world’s top 20

countries in attracting foreign direct invest-

ment, according to a recent IBM report. Direct

foreign investment in Uruguay has quadru-

pled over the last eight years while the coun-

try’s exports of goods and services have risen

fourfold as well.

An independent nation since 1828, Uru-

guay has Latin America’s oldest two-party

democratic system, in existence for over 150

years. The country has been led by a reform-

oriented government since 2004 and today

Uruguay’s political and labor conditions are

among the freest in South America. Uruguay

is also Latin America’s most peaceful country

according to the 2011 Global Peace Index.

Wealth of attractions for foreign investors

For foreign investors, Uruguay offers po-

litical and economic stability, a pro-business

environment, well-established regional and

international trade links, skilled multilingual

labor, developed infrastructure, many high-

potential economic sectors, and preferential

access to key markets through free-trade

agreements.

These include Uruguay’s participation as a

founding member in MERCOSUR, the Southern

Common Market, as well as its participation

in the Latin American Integration Associa-

tion (ALADI), the largest integration group in

Latin America. Uruguay is also a member of

the World Trade Organization. Thanks to Uru-

guay’s free-trade agreements, investors enjoy

preferential access to markets throughout

South America as well as Mexico and Israel.

Diversified economy with fast-growing sectors

Uruguay’s economy is dominated by agri-

culture and services; leading sectors include

Strategically located

Uruguay, set on South

America’s southern

Atlantic coastline

between Brazil and

Argentina, has developed

a flourishing economy

with a business climate

ranked number one in

Latin America.

INTRODUCTION

© Uruguay XXI


Strong GDP growth to continue

Following an economic crisis in 2002 caused

mainly by a downturn in Argentina and Bra-

zil, Uruguay achieved a turnaround in 2003

and its economy has been growing robustly

ever since. Uruguay managed to avoid a re-

cession in 2009 and achieved 8.5 percent

growth in 2010 with an average 4 percent per

year expected for 2011 to 2015. GDP per cap-

ita almost doubled between 2004 and 2010,

reaching around U.S. $12,000.

Uruguay offers a positive investment climate,

with a strong legal system, open financial

markets, equal treatment for national and

foreign investors, many incentives, and free

remittance of capital and profits. Quality

INTRODUCTION

of life in Uruguay is high thanks to its year-

round warm, temperate climate, security,

and modern health, education, communica-

tions and transport services. Uruguay was

the highest rated country in Latin America

on the 2011 Legatum Prosperity Index, which

assesses countries’ economy and quality of

life. Uruguay was also ranked second in Latin

America in the World Bank’s Human Oppor-

tunity Index for 2010.

Public-Private Partnership law

Uruguay continues to create new attractions

for investors. In July this year, the govern-

ment passed Uruguay’s first public-private

partnership law, which is designed to stimu-

late investment in infrastructure and related

services. Uruguay has also created “Empresa

en el Día”, which allows investors to set up a

company in only one day.

Investors in Uruguay are protected through

the country’s Investment Promotion and Pro-

tection Law, and, according to The Global

Competitiveness Report 2011, Uruguay is

number two in Latin America concerning

protection of intellectual property. Uruguay

created a one-stop shop for investors in 2008

and the dynamic investment and trade-pro-

motion agency Uruguay XXI offers a wealth

of information and services for potential and

current investors.

Regional logistics hub and trade gateway

Uruguay’s well-developed infrastructure is

definitely a plus. Uruguay has deep-water

ports that are unique in South America, in-

cluding Montevideo’s world-class port, as

well as road, rail, air and inland waterway

transport systems, all of which are steadily

being upgraded and expanded through mas-

sive public and private investment projects.

A few recent developments include a new air-

port, a new belt highway in Montevideo, road

expansion to Colonia, and a new ferry port in

Colonia, among many others. Uruguay’s road

network is the densest in Latin America and

is ranked second in Latin America in quality.

Uruguay also has state-of-the-art telecommu-

nication services and the largest cell-phone

teledensity rate in Latin America, with 132

lines for every 100 inhabitants.

Uruguay welcomes investors from the United

States, who will find in this small but dynam-

ic country a range of high-potential business

opportunities.

© Uruguay XXI

trade, agriculture and agri-industry (meat

processing, wood pulp, rice, soybeans, and

wheat), construction and tourism. Though

still small, the software industry is growing

rapidly, and foreign investors are also target-

ing mining, renewable energy, infrastructure,

logistics and other sectors.

The logistics sector, in fact, has achieved

triple the growth rate of other sectors in re-

cent years as Uruguay builds on its strategic

location and modern infrastructure to posi-

tion itself as a key logistics hub and gateway

to the region. Trade-oriented Uruguay has

opened 12 free-trade zones, three of which

are dedicated to services (such as financial

and software services, call centers and logis-

tics). Uruguay offers United States firms sig-

nificant advantages as a MERCOSUR-region

distribution platform.


INTRODUCTION

Adriana Rodriguez, Director National Development Agency

National Development Agency Promoting Public-Private Partnerships

One of CND’s responsibilities is to manage pub-

lic-private partnerships in the infrastructure

sector in line with Uruguay’s new law on such

partnerships. Ms. Rodriguez points out, “CND

was chosen to manage these partnerships be-

cause of our experience in managing two ma-

jor infrastructure projects. We are in charge of

maintaining and managing 1,600 kilometers

(994.1 miles) of roads and we are also maintain-

ing and managing Uruguay’s railways.”

Liaison between public and private sectors

CND serves as a liaison between the private

sector and the government concerning po-

tential partnerships. CND reviews all pro-

posals from private companies looking to

invest in Uruguay in different fields, serving

as a conduit for the private companies in

order to streamline the investment process.

CND may also review projects presented by

public institutions, helping them to evaluate

and look for suitable partners in the private

sector. Ms. Rodriguez says, “For example,

we are currently working with the Minister

of the Interior and the Minister of Economy

and Finance concerning a proposed project

to build the first PPP prison in Uruguay. Our

role is to offer advice, research opportuni-

ties, and look for investors worldwide. We

are presenting Uruguay to the world.”

Upcoming CND projects with particularly

strong investment potential include projects

to build and maintain highways and upgrade

and expand Uruguay’s railway system as well

as a project to build a new convention center

in Punta del Este. “We also have medium-term

initiatives in the healthcare sector, including

building new hospitals, as well as a project to

upgrade some of Uruguay’s ports,” Ms. Rodri-

guez explains.

CND is actively involved in promoting Uru-

guay in international markets, working with

chambers of commerce, Uruguay’s construc-

tion chamber, and various ministries. High-

lighting Uruguay’s investment appeal, Ms. Ro-

driguez says, “Uruguay has a great regulatory

framework, macroeconomic stability, signifi-

cant growth prospects in the region, excellent

telecommunications, a number of investment

incentives, and many infrastructure projects

underway.”

The Corporación Nacional

para el Desarrollo (CND),

Uruguay’s national

development agency,

plays a crucial role

in driving Uruguay’s

economic development

forward. The agency,

a public institution

operated like a private

company, has 25 years of

experience in promoting

Uruguay’s business sector.

Adriana Rodriguez, President, explains that

CND’s core activities are promoting infra-

structure development and providing ser-

vices to private-sector companies, includ-

ing micro-financing support for small and

medium-sized enterprises as well as advice

concerning companies’ business plans.

Since 2010, CND has also been involved in

funds management for public and private

institutions.

© Uruguay XXI

Ruta 5, Rivera

6

BUSINESS & INVESTMENT OPPORTUNITIES


Strong Macroeconomic Fundamentals Supporting GDP Growth

of investment we have been attracting in

order to further improve our productivity

and competitiveness, and to create more

opportunities for our people,” Minister Lo-

renzo says.

New incentives for foreign investment

To keep FDI flowing in, Uruguay has devel-

oped a solid regulatory framework that pro-

tects investors and it has also created new

investment incentives, including tax breaks

and the possibility to operate in free zones.

To benefit from these advantages, compa-

nies are evaluated according to whether

they will create new jobs, generate exports,

promote clean technologies, and help to

extend development to Uruguay’s rural ar-

eas. “This procedure is absolutely transpar-

ent, and investors will be informed of the

results within 60 days,” Minister Lorenzo

explains.

Ideal business base in fast-growing region

Uruguay is positioning itself as an ideal

business base and trade hub in a fast-grow-

ing region. It is currently working to inform

the international investment community

about these new developments. “Uruguay

is part of the future’s most prosperous re-

gion. There are so many opportunities in

this country that we would like to share

with investors and visitors,” Dr. Lorenzo

points out. A new public-private partner-

ship law and a system to start a business

in only one day are some of Uruguay’s most

recent investor-friendly initiatives.

Fernando Lorenzo is very positive about

Uruguay’s prospects. He says, “Uruguay

grew by more than 8 percent in 2010 and

we anticipate annual growth of 4 percent

over the next few years. We aim to make

sure that this economic growth contributes

to our goals for social development.”

Uruguay’s open economy,

one of the few in Latin

America to escape

recession in 2009, is set

for continued strong

performance.


As Minister of Finance and Economy, Fer-

nando Lorenzo Estefan, points out, “Uru-

guay’s economy has been growing above the

Latin American average for several years

and has developed the right macroeconom-

ic and microeconomic fundamentals. This

allowed us to weather the global crisis, and

in fact every sector of our economy is cur-

rently experiencing growth.”

The agriculture sector and related indus-

tries are among the top performers thanks

to recent technological developments that

have brought about an increase in produc-

tivity, and Uruguay’s services sector now

accounts for over 25 percent of the coun-

try’s exports, according to the minister.

Uruguay’s tourism sector is another suc-

cess story. “The Uruguayan economy is very

open not only in the trading of goods but

also in the trading of services. Our current

challenge is to consolidate the high levels

© Uruguay XXI

Rincón 528 • Piso 6 P.O. Box 380 • 11000 Montevideo

Uruguaytel: +598 2915 9257

web: www.barbosacaravia.com


Telecom Leader Building a Knowledge-Based Society

Carolina Cosse, President, explains, “This

goal is part of our mission to serve as an

engine of growth for building a knowledge-

based society, because through Internet con-

nections Uruguayans can access a whole new

range of services, from e-government to on-

line education, new work options, and much

more. Antel is committed to building this

new platform. We have high revenues, 6,000

workers and a track record for efficiency, and

we have a very aggressive investment plan.”

The dynamic enterprise has around 2 million

cellular subscribers and 1.6 million land-line

subscribers, 600,000 of which are data sub-

scribers. Antel is also Uruguay’s only provider

of ADSL Internet connections. Achieving annual

turnover of U.S. $800 million, Antel continues to

expand its infrastructure and offer new services.

Strong commitment to Plan CEIBAL education initiative

Education is a top priority for Antel, which is

providing crucial support for Uruguay’s ambi-

tious Plan CEIBAL education program through

subsidizing half of the program’s telecom com-

ponent. Plan CEIBAL aims for every child in

Uruguay to have access to a computer; the pro-

gram has already provided free Internet access

and 450,000 computers to primary schools.

Antel has also signed an agreement with Uru-

guay’s national education system to launch

a cutting-edge Multiprotocol Label Switching

(MPLS) data network that will be available to

all the country’s educators. Antel is already

working in partnership with Uruguay’s uni-

versities and national industry to develop an

operation support system (OSS).

To help maintain its competitive edge, Antel

emphasizes staff training and wants most of

its employees to be able to speak English and

Portuguese. “We are promoting interdepen-

dence among our workers instead of depen-

dence on the company,” Ms. Cosse says.

As part of its drive to provide customer-cen-

tered services, Antel is currently involved in

a fiber-to-the-home project which will reach

240,000 homes in Uruguay in 2012. Ms.

Cosse points out, “This project reflects our

long-term, national strategy for universaliza-

tion of bandwidth as well as our exceptional-

ly strong commitment to improving the lives

of the people of Uruguay.” Antel continues to

fully integrate its technical infrastructure.

Antel is making a major contribution to Uru-

guay’s economic development. Ms. Cosse ex-

plains, “At Antel, we know that we have the

opportunity to develop many things around

our business and around the development of

our business. We can stimulate national indus-

try, including Uruguay’s software industry.”

Antel is building the

foundations of a true

knowledge-based society

in Uruguay and aims for

every home in the country

to have an Internet

connection.

Carolina Cosse, PresidentAntel

www.antel.com.uy



Tracy Betts, Country Representative Inter-American Development Bank

Development Bank Highlights Investment Opportunities

Country Representative Tracy Betts explains,

“The Inter-American Development Bank en-

joys a special relationship with Uruguay. We

have always had a strong physical presence

in the country and this has allowed us to

develop solid connections with other banks

and financial institutions as well as with the

government, civil society and private sector.

As for our clients, we really see them as our

development partners, associates and actu-

ally, owners of the bank. Quoting our first

president Felipe Herrera, Uruguay’s Minister

of Finance has said on many occasions, the

IDB is much more than a development bank.”

The Inter-American Development Bank current-

ly has a portfolio of around 84 projects totaling

around U.S. $1.2 billion in Uruguay, including

non-reimbursable financing as well as credit

operations with the government. Ms. Betts ex-

plains, “We are involved in three main areas:

investments that will boost Uruguay’s competi-

tiveness and improve the business climate, ones

that will upgrade the efficiency of the public

sector, and ones that will help ensure poverty

reduction and social equality. We are active in

most economic sectors and our approach is

holistic; for example, we not only support edu-

cation but also initiatives that will improve the

transition from school to the workplace.”

Highly skilled, flexible team

The Inter-American Development Bank has

supported the financing of Montes del Plata,

Uruguay’s biggest private investor to date,

among many other private companies. Cur-

rent projects in the works for the bank range

from wind farms and other renewable-energy

initiatives to new water and sanitation sys-

tems, urban transportation and more. Help-

ing Uruguay reach its goals for renewable

energy is a top priority for the Inter-Amer-

ican Development Bank, which ensures that

all the projects it supports meet the highest

international environmental sustainability

standards.

Praising her highly skilled team, Ms. Betts

says, “This bank works hand-in-hand with in-

vestors and offers flexibility, diversity, and a

quick response.”

Uruguay has outstanding investment poten-

tial, Ms. Betts believes. She says, “Along with

its political and economic stability as well as

a solid legal system, Uruguay also has high-

quality human resources and many new in-

vestment prospects, for example in public-

private partnerships. My advice to potential

investors is to come to Uruguay, get to know

the country and get to know the Inter-Amer-

ican Development Bank. This is an amazing

country with amazing opportunities. It may

be the best-kept secret in Latin America!”

The Inter-American

Development Bank (IDB),

founded in 1959, has

been active in Uruguay

for over 50 years and has

in-depth knowledge of

the Uruguayan economy.

IDB supported the Montes del Plata project in Uruguay with a loan of U.S. $200 million

IDB building in Uruguay


Successful Pension Fund Ready to República AFAP has a market share of 38%

in terms of affiliates and manages more than

56% of Uruguay’s pension-fund assets. Be-

sides that, it has around 20 branch offices

throughout the country in addition to its

headquarters in Montevideo.

Founded 15 years ago when Uruguay’s pen-

sion system was reformed, República AFAP

is the only state-owned pension fund in Uru-

guay and enjoys the support of its sharehold-

ers, “Banco de la República Oriental del Uru-

guay”, “Banco de Previsión Social” and “Banco

de Seguros del Estado”. However, República

AFAP is operated as a private company. “We

are a state-owned company working under

the private sector rules,” explains its Presi-

dent, Luis Costa.

Uruguay’s pension system differs from other

Chilean pension models applied in the re-

gion in terms of having a multi-pillar system

and offering to their affiliates only one fund

without differentiating profiles of risk. Mr.

Costa says, “Uruguay used to have a ‘pay-as-

you-go’ system but this was changed 15 years

ago into a mixed, multi-pillar system that

includes both pay-as-you-go and personal ac-

counts. Currently, there are four companies,

including República AFAP, offering personal-

accounts services. Most of the population in

Uruguay supports a strong public sector so

this two-pillar approach was seen as the right

choice for us. Every worker in Uruguay has

the chance to be in the two-pillar system, un-

like in Chile or Peru where a worker has no

choice, or must choose between them. The

system has been growing fast since 1996 and

now we have around 1 million affiliates, or

one third of the population of Uruguay.”

Pension fund totals almost U.S. $8 billion

República AFAP has achieved a very strong

track record investing successfully its clients’

contributions. Mr. Costa says, “Over the 15

years of operations, we have had very good

results from investing our workers’ contribu-

tions. The whole pension fund industry now

totals almost U.S. $8 billion, which is quite

large for Uruguay since it shares 17% of Uru-

guay’s GDP, and we manage around U.S. $4.5

billon, 56% of the industry.”

República AFAP has achieved these stellar re-

sults in spite of the fact that up until 2007 the

company was not allowed to invest abroad.

It has also been hampered by Uruguay’s lack

of a developed capital market. Mr. Costa ex-

plains, “Around 80% of total personal sav-

ings in Uruguay is invested in public-sector

debt, since the equity and private bond mar-

ket are extremely reduced and with very low

liquidity. The equity market capitalization

República AFAP, the

largest pension-fund

investor in Uruguay, has

had an excellent track

record of successful

investments and has

shown a steady rate

of growth in affiliates

and assets under

management.


República AFAP



Luis Costa, President

www.rafap.com.uy

represents about 0.6% of the GDP and the

outstanding private bonds are nearly 1.5% in

terms of GDP. It is clear that our capital mar-

ket does not exist and one of the reasons is

the preference of the private sector to finance

through the banking system.”

In 2007, República AFAP was allowed to in-

vest in multilateral bonds, the “first window

to diversify our assets from the country risk.”

In 2010 we were authorized to buy sovereign

bonds issued by countries with very high

credit rating, Mr. Costa explains. As we can-

not invest in equity from abroad we have to

take advantage of all the opportunities within

our country.”

Praise from Fitch ratings service

Fitch ratings service assigned an M1 national

scale rating to República AFAP in 2008, 2009

and 2010, remarking, “The rating is based

on República AFAP’s ample experience and

seniority in the sector and a solid infrastruc-

ture to control and manage risks as well as

consistent portfolio management processes,

which are backed by investment analysis and

follow-through”. Fitch also praises República

AFAP’s “transparency, excellent management

capabilities, and systems that can be adapted

to every procedure”. Similar concepts and

rating were assigned by Standard and Poor’s

in 2004 and 2005.

Vast potential in public-private partnerships

The future will bring significant new oppor-

tunities for República AFAP and for other in-

vestors in Uruguay, Mr. Costa believes, and

he welcomes the chance to work with joint-

venture partners in high-potential projects.

He says, “There are a lot of new investment

possibilities, especially with Uruguay’s new

law on public-private partnerships. New busi-

nesses will be created, and pension funds will

play a major role in financing these new en-

terprises. This will be a good time for inves-

tors to be involved in joint ventures with us.

We can provide our expertise in doing busi-

ness in Uruguay and foreign investors and

companies from abroad can contribute with

know-how celebrating different frame agree-

ments with local companies or stand alone. A

win-win situation.”

For potential partners, República AFAP of-

fers 15 years of experience and a history of

successful investments in a wide range of

sectors. República AFAP has participated in

nearly 90% of the private sector issuances of

debt allocating funds in sectors such as in-

dustry, agribusiness, infrastructure, tourism

and healthcare. As Mr. Costa points out, “We

have the experience and the professionalism

to make things happen. Exhaustive and effec-

tive due diligence and continuous monitoring

of our investments are other strengths of our

team. We know in depth the main local com-

panies and their track records. We have the

knowledge that is needed to achieve success-

ful businesses here in Uruguay.”

Ready to form strategic partnerships

República AFAP plans to step up its invest-

ments in new projects, including the ones

launched by foreign investors, and it is open

to forming strategic partnerships. Mr. Costa

concludes, “República AFAP is a long-term

investor. We can provide long-term financing

in local currency, two important advantages

that banks usually cannot afford. Our main

goal is to invest our affiliates’ contributions

in the most efficient way in order to achieve

the best returns for their savings. We wel-

come all new initiatives and projects to come

and encourage new investors from abroad to

do business in Uruguay, a country with clear

rules to participate and a lot of potential.”

Serve as Investors’ Local Partner

12

TRADE & INDUSTRY


Thriving Industrial Activities Drawing Foreign Investors

Uruguay’s strong economic performance over

the past decade is a major draw. After achieving

an average 6.5 percent annual growth between

2004 and 2008, Uruguay managed to avoid a

recession and keep a positive growth rate of 2.9

percent in 2009, mainly through higher public

expenditure and investment. In 2010, Uruguay

achieved a robust 8.5 percent growth rate.

To keep this outstanding performance on

track, Uruguay has launched economic lib-

eralization programs that have included

lowering tariffs, controlling deficit spend-

ing, reducing inflation, and cutting the size

of the public sector. Uruguay’s economy is

based on free enterprise and private owner-

ship, while the state still fully or partially

owns companies in the insurance, water

supply, electricity, telephone service, petro-

leum refining, airlines, postal service, rail-

ways and banking sectors.

Private-sector success stories

Private-sector success stories abound in

Uruguay. One example is Motociclo, found-

ed in 1931 and now Uruguay’s leader in

domestic sales of electronics products and

bicycles, motorcycles, car parts and acces-

sories. Motociclo continues to expand and

is well known for its strong commitment to

community-service projects.

With its political and

economic stability, many

growth sectors, strategic

location, well-developed

infrastructure, skilled

and multilingual human

resources, free-trade

agreements, and investor-

friendly legislation,

Uruguay is an ideal choice

for foreign investors in

industry and trade.

TRADE & INDUSTRY

© Uruguay XXI


One of Uruguay’s most successful foreign in-

vestments is Industria Papelera Uruguaya (Uru-

guay Industrial Paper, or IPUSA), part of a Chil-

ean group. IPUSA has invested around U.S. $30

million over the past three years in doubling its

production in Uruguay. Ricardo Pereiras, Gen-

eral Manager, cites Uruguay’s well developed

infrastructure, incentives offered by the gov-

ernment, and access to growing markets as key

reasons IPUSA continues to invest there.

Another success is ZTE. Explaining the Chinese

IT company’s decision to invest in Uruguay,

Guo Junliang, company representative, says,

“Strategically, Uruguay is well placed, and Uru-

guay’s capital, Montevideo, has a good natural

harbor. Another very remarkable aspect about

working in Uruguay is that every procedure is

open and clear, and no difference is made be-

tween local and foreign companies.”

Compac, a New Zealand firm that manufactures

fruit-sorting equipment, is also pleased with

Uruguay. “We decided to set up a factory in Uru-

guay due to its very attractive free-zone legisla-

tion, the flexibility of its financial system and it’s

more stable and less bureaucratic government

compared to other Latin American countries.

Putting all this together and adding a very good

education level, Uruguay has a mix difficult to

match by other countries in the region,” says Se-

bastian Martinex, CEO of Compac Latin America.

Foreign investments in Uruguay are allowed

without prior authorization, there is fully

free remittance of capital and profits, and a

decree passed in 2007 provides significant

incentives to both local and foreign inves-

tors. Around 100 American firms now op-

erate in Uruguay; according to the U.S. De-

partment of Commerce, direct United States

investment in Uruguay totaled U.S. $2.9 bil-

lion in 2009.

High-potential sectors

Uruguay XXI, Uruguay’s investment and trade

promotion agency, singles out a number of

sectors that offer particularly strong invest-

ment potential: the automotive and auto parts

industry, contact centers, the dairy industry,

forest products, life sciences, logistics, off

shoring and outsourcing, renewable energy

in electrical power generation, shipbuilding,

tourism, and real estate, among others.

Uruguay has a diverse economy once domi-

nated by agriculture until services began to

play a leading role. Agriculture remains a

key contributor to GDP, however, and food

processing is one of Uruguay’s strongest in-

dustrial sectors. Uruguay’s main agricultural

products are beef, soybeans, cellulose, rice,

wheat, lumber, dairy products and fish.

Other thriving industries include electrical ma-

chinery, transportation equipment, petroleum

products, textiles, chemicals and beverages.

Uruguay’s industrial production growth rate

reached an impressive 9.5 percent in 2010.

Uruguay’s industrial activities have long

been geared to foreign trade, and the

country’s exports reached a total value of

over U.S. $8 billion in 2010, a significant

increase over 2009’s U.S. $6.4 billion. Top

export commodities include beef, soybeans,

cellulose, rice, wheat, wood, dairy products

and wool. Uruguay’s main export markets

in 2010 were Brazil, accounting for 21 per-

cent of total exports, followed by Nueva

Palmira Free Zone (10.2 percent), Argentina

(7.5 percent), Chile (5.5 percent), and Russia

(5.3 percent).

The biggest Industrial and Logistics Park in Uruguay

[email protected]

Camino Carrasco 5888 - 11500 MontevideoCamino Carrasco 5888 - 11500 MontevideoTel: +598 26016062

www.sebamar.com.uy

Av. Sayago 1385P.O. Box 1032

12400 MontevideoTel: +598 2 354 2080

www.motociclo.com.uy

IPUSA


Uruguay’s total imports reached U.S. $8.3 billion in 2010, compared to

U.S. $6.6 billion the previous year. Leading import commodities in 2010

were crude oil (13.4 percent), refined oil (4.9 percent), passenger ve-

hicles (3.5 percent), transportation vehicles (2.7 percent), vehicles parts

(2.2 percent), cellular phones (2.1 percent), and insecticides (1.7 per-

cent). Top sources of imports in 2010 were Brazil, accounting for 18.6

percent of total imports, followed by Argentina (16.7 percent), China

(13.5 percent), Venezuela (9.1 percent), the United States (8.3 percent),

and Russia (4.2 percent). Uruguay has diversified its trade in recent

years and continues to reduce its longstanding dependency on Argen-

tina and Brazil.

Free-trade agreements and Mercosur access

Trade between Uruguay and the United States has been steadily increas-

ing. The two countries signed a Bilateral Investment Treaty that entered

into force in 2006 and a Trade and Investment Framework Agreement in

January 2007. In 2008, the two countries signed a science and technology

agreement and a memorandum of understanding on renewable energy

and energy efficiency. Uruguay cooperates with the United States on law

enforcement matters such as regional efforts to fight drug trafficking

and terrorism, and it has also been very active in human-rights issues.

Uruguay has signed a number of other trade agreements that add

to its investment appeal for trade-oriented companies. Uruguay is a

founding member of Mercosur, the Southern Cone trading bloc also

composed of Argentina, Brazil, and Paraguay; in fact, the Mercosur

Secretariat is located in Montevideo. Mercosur allows for the free cir-

culation of goods and factors of production among member countries

through the elimination of customs duties and non-tariff barriers; in-

cludes a provision for a common external tariff and a common trade

policy; and involves a commitment by member states to harmonize

their legislation in pertinent areas to strengthen the integration pro-

cess. Mercosur has signed free-trade agreements with Chile, Colombia,

Peru, Ecuador, Venezuela, Bolivia and Israel, and Uruguay has signed

its own free-trade agreement with Mexico.

Uruguay has been a member of the World Trade Organization since

its creation in 1995 and is also part of the Latin American Integration

Association (ALADI), the largest integration group in Latin America.

ALADI has 12 member countries, which are Argentina, Bolivia, Brazil,

Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru and Venezu-

ela in addition to Uruguay.

In July this year, Uruguay ratified its first public-private partnership

(PPP) law, which regulates contracts between the government and the

private sector for infrastructure construction and related services.

The law will provide yet another compelling reason for international

investors to target Uruguay.

Plaza Independencia 831 - MontevideoTel: +598 (2) 908 3000

www.sonda.com

Thriving Ice-Cream Enterprise Aiming to Export

Founded in 1969, the 100 percent Uruguayan family-owned enter-

prise now operates 17 stores in Uruguay and provides ice cream for

the Burger King restaurant chain. La Cigale is known for its inventive

flavors of ice cream, including the very popular “Cappuccino Remix”

and “Passion Maracuya”.

Carlos Lorenzo, President, is a hands-on administrator who devel-

oped La Cigale’s delicious ice-cream cone and continues to come up

with new ice-cream flavors. Explaining his company’s success story,

he says, “The quality of the product is our main competitive advan-

tage. We even produce our vanilla flavor using the best possible ingre-

dients we import from Madagascar! In addition, I have autonomy and

can make decisions quickly wherever I am.”

La Cigale is currently building a new production facility and aims to

export its ice creams to Brazil, Mexico and Spain as well as to con-

tinue to expand in Uruguay. Carlos Lorenzo is very positive about the

future of his company and of Uruguay. To potential investors in the

United States, he says, “Uruguay is a small market but a good one for

investors. Companies always pay their bills here and there is a lot of

business to be done in this country. As for La Cigale, we have ambi-

tious plans for the future.”

La Cigale has made a name for itself as a

provider of top-quality ice creams made

with the finest natural ingredients.

TRADE & INDUSTRY

La Cigale

www.lacigale.com.uy


Leading Textiles Firm Celebrates 50 Years of Success

“We aim for an audience that feels young,”

says Managing Director Luis Badano. He

adds, “We use high quality raw materials, in-

cluding natural fibers, cashmere and wool.

We try to focus on Uruguayan materials but

we use many Italian raw materials as well.”

In fact, Everfit has been thriving since its

launch in 1961 thanks to its longstanding

focus on high quality. Mr. Badano explains,

“When I took on the management of Everfit,

I knew I had a big responsibility to maintain

the commitment to quality and to people

that Everfit has had since its beginnings. This

commitment makes our garments unique and

is the reason behind our success.”

Quality at every stage, from choice of fabrics to production

What is Everfit’s competitive edge? Mr.

Badano says, “Quality operators and mod-

ern technology! We absorb everything that

Chinese suppliers cannot take on, particu-

larly orders that involve small volumes and

special details. China can be uncooperative

and that has been a big plus for us. It is a

reason why big companies choose our mar-

ket. Everfit does not aim at a specific style

of tailoring and we also do not do interme-

diary tailored work, but rather something

in between. Our soft-shoulder style sells

very well in America and we also provide

a slim fit.”

Everfit’s partners can benefit from Tem-

porary Admission legislation that allows

foreign firms to buy fabrics in European

and Asian markets and send the fabrics to

Everfit to be turned into garments that can

be exported to MERCOSUR markets duty-

free. Everfit operates a state-of-the-art,

5,000 square meter (53,819 square feet)

production facility that employs 500 work-

ers and is equipped with the most modern

equipment and technologies in Uruguay’s

textiles sector.

Everfit has also developed its human capi-

tal, and the company’s creative depart-

ment makes sure that Everfit garments

keep pace with the latest global fashion

trends. Mr. Badano concludes, “Our verti-

cal operation allows us to closely monitor

all our products at every stage, from the

choice of fabrics to the designs of our col-

lections and our cutting-edge production

processes.”

When Everfit SA presented

its new fall/winter

collection in May 2011, it

also celebrated 50 years

of success in the textiles

industry. Everfit’s fine

garments have earned

a strong presence in

Uruguay’s domestic market

as well as throughout the

MERCOSUR region and

in Mexico and the United

States, where Everfit has an

office in Miami.

TRADE & INDUSTRY

Everfit SA

www.everfi t.com.uy

17

HEALTH & PHARMACEUTICALS


The government of Uruguay has traditionally

placed great emphasis on preventive medi-

cine and on a sociological approach to public

health problems, and in its current health-

care reform program, the Ministry of Public

Health remains strongly committed to mak-

ing high-quality healthcare accessible for all

members of Uruguay’s population.

Jorge Enrique Venegas, Uruguay’s Minister of

Public Health, explains that his ministry has

four main objectives for the healthcare sec-

tor. First on the list is to improve healthcare

coverage through the National Health Fund.

He says, “We aim to make sure that at least 92

percent of Uruguay’s population has health

insurance, from workers to small and medium-

sized enterprises and large companies.”

Synergy between public and private healthcare sectors

In line with this objective, Minister Venegas

intends for both public and private health-

care facilities and services in Uruguay to meet

the same high standards and have access to

the same state-of-the-art technologies. He

says, “The main challenge is making sure that

the National Health Fund promotes synergy

Jorge Enrique Venegas, Minister of Public Health

Ministry Overseeing Major Reforms in Healthcare SectorUruguay’s Ministry of Public

Health is currently involved

in the country’s second

ambitious healthcare

reform project, which

focuses on upgrading

both public and private

healthcare.


between the public sector and the private sec-

tor, and that the two sectors are complemen-

tary, so that if one sector has a certain kind of

technology, that sector will provide the tech-

nology to the other sector, and vice versa.”

The second main objective for the Ministry of

Public Health is to upgrade Uruguay’s health-

care human resources. Minister Venegas ex-

plains, “If we are going to improve our health-

care, we need to improve our healthcare

professionals, so we are going to strengthen

our university programs in healthcare and

upgrade healthcare training for doctors,

nurses and specialists. This will also require

investments in technologies.”

Investing in healthcare infrastructure

Improving healthcare infrastructure is the

ministry’s third major objective. Minister Ven-

egas says that the ministry wants to stream-

line connections between the insurance sys-

tem, hospitals and patients so that all patients

can be confident that their problems will be

solved efficiently. “To reach this goal we need

to invest in salaries as well as in infrastruc-

ture, mainly new technologies,” he points out.

Pfi zer UruguayCebollati 1474

Piso 3, Ofi cina 302 - MontevideoTel: +598 (2) 412 0000

www.pfi zer.com.uy


The fourth objective for the ministry is to up-

grade information technology throughout the

healthcare system to make it more patient-

friendly and efficient. In all these reforms,

the Ministry of Public Health aims to ensure

that public and private healthcare facilities

provide the same level of care.

Working with international partners

To achieve its goals, the Ministry of Public

Health is working with a number of interna-

tional partners. The ministry is involved in a

research program with the University of Vir-

ginia concerning treatments for diseases of

the liver, and is also working with institutions

in Germany and Brazil in a project to improve

healthcare infrastructure in rural areas. In ad-

dition, the Ministry of Public Health is partner-

ing with the Organizacion Panamericana de

la Salud (Pan-American Healthcare Organiza-

tion) concerning a vaccination program for

residents of rural areas throughout the region.

The Ministry of Public Health has also worked


with the United States Institute of Inter-Ameri-

can Affairs to create the Inter-American Coop-

erative Public Health Service, which has built

health centers and clinics in Uruguay.

Uruguay is actively involved in regional

healthcare initiatives, and Minister Ven-

egas serves as the Coordinator of the South

American Council of Health of the Union

of South American Nations (UNASUR). At a

recent conference of healthcare leaders in

Latin America and the Caribbean, he said,

“Every endeavor at coordination among

countries in the region concerning health-

care is needed, and cooperation is possible

in many areas, so we need the political will

to set an agenda of priorities and spotlight

opportunities. In Uruguay, as we make ev-

ery effort to escape unscathed from the

global financial crisis, in the field of health

we are paying more attention to caring for

people in extreme poverty. We also know

that healthcare improvements cannot be

tackled without consideration of education,

labor and housing factors.”

Seeking private-sector investment

To help reach its targets, the Ministry of Public

Health seeks private-sector investment in Uru-

guay’s healthcare sector. “Our relations with

the private sector are close and productive,

but we need a lot of investment in healthcare

infrastructure, so we welcome the chance to

partner with the private sector in new proj-

ects. There are many investment opportunities

in healthcare in Uruguay, and investors can be

confident that their interests will be protected

here, since this country has a well-established

legal framework and no corruption,” Jorge En-

rique Venegas points out.

The future looks bright for Uruguay’s healthcare

sector, Jorge Enrique Venegas believes. He says,

“Five years from now, we will have made many

improvements in our healthcare sector and will

have great infrastructure capacity, better man-

agement and better human resources. We wel-

come foreign investors interested in projects that

will be beneficial for the people of Uruguay.”


Solidarity Organization Providing Essential Services

ANDA is a non-profit institution that provides

a wide range of essential support for its mem-

bers, including medical and dental care, mone-

tary credits, legal counsel, guarantees for rental

leases, social tourism and other types of assis-

tance. ANDA operates almost 47 offices around

the country and recently opened a new branch

in Montevideo’s Malvin Norte district to better

serve residents of Uruguay’s capital city.

Helping government assist those in need

Washington Almada, President, explains,

“The main objective of ANDA is to be a com-

plementary institution for the state. Our mis-

sion is to help the state offer social services

to the community, such as micro credits for

food, clothing and healthcare. ANDA is a

unique institution here in Uruguay. We are al-

ways working to provide easier access to ne-

cessities for the people of our country.” One

of ANDA’s priorities is to help Uruguayans to

rent their homes, and the organization has

now granted over 21,600 housing guarantees

for people throughout the country.

In the healthcare sector, ANDA recently

opened a new medical clinic in Montevideo

where it has invested in the latest technolo-

gies, including cutting-edge information-

technology systems for medical records and

other services. ANDA operates around 40

clinics throughout the country that provide

dental as well as health services for local resi-

dents. ANDA subsidizes around 80% of the

healthcare services it offers.

Serving around 500,000 citizens of Uruguay

ANDA has around 1,200 employees, almost 35

percent of whom are working on healthcare

projects. ANDA provides its services to around

500,000 citizens of Uruguay and is well known

for its efficiency and high standards. Mr. Al-

mada points out, “We are a unique institution

in the country and do not have any competi-

tors, but our strengths are that we provide

good interest rates for our affiliates and we

are widely recognized here in Uruguay as be-

ing a serious and transparent organization.”

ANDA has often been praised by Uruguay’s

Ministry of Health “because we do things

right,” as Mr. Almada puts it. ANDA has decen-

tralized its operations to boost its efficiency

and has developed a strong presence in indi-

vidual neighborhoods in Montevideo as well as

in local communities all over the country in

order to reach every level of Uruguay’s popula-

tion. “We have 200,000 affiliates in the health-

care sector and around 90 percent of them are

from the poorer classes,” he points out.

Mr. Almada is committed to maintaining AN-

DA’s high level of services and to positioning

ANDA as an example of a well-run organiza-

tion in Uruguay. He says, “We at ANDA be-

lieve that it is vital for us to help promote

Uruguay. Uruguay, which celebrated its bi-

centennial last year, has a low index of cor-

ruption, enjoys political and economic stabil-

ity, and is open to new investments.”

ANDA, known as the

“solidarity organization”,

has been operating in

Uruguay for 78 years

and has earned a strong

reputation for its high-

quality services.


Washington Almada, President

ANDA

www.anda.com.uy


Leading Private Healthcare Services

Ambitious ongoing modernization program

Continually updating its facilities and ser-

vices is a key goal for Asociación Española,

which is currently involved in a U.S. $38.2

million upgrade program with the support

of Uruguay’s government that includes a U.S.

$15 million investment in new technologies

and medical devices. “We are committed to

our goal of remaining pioneers in our field

and the number one institution in terms of

medical technology in Uruguay. We will con-

tinue to purchase new cutting-edge medical

equipment in the future,” Dr. Martinez says.

Asociación Española recently acquired the

most advanced magnetic resonance imaging

(MRI) equipment in Uruguay, one of only four

such machines in the region.

Contributing to government’s healthcare reform drive

The government of Uruguay and Asociación

Española have been working as partners giving

each other key support in healthcare programs

development. Dr. Martinez explains, “Govern-

ment officials, including the Ministry of Health,

work with us because we are helping them to

reach their goal of upgrading Uruguay’s health

services, for example Primary Healthcare Pro-

grams, as well as through our continuing in-

vestments in technology and infrastructure,

including the creation of new clinics all over

the country. In addition, we are bringing high-

quality health services to everyone in Uruguay,

including underprivileged classes, and we are

promoting disease prevention and health edu-

cation in local communities.”

In all its activities, Asociación Española

makes patients its top priority. Dr. Martinez

says, “We are a non-profit organization that

treats patients humanely, never as merchan-

dise. We also reinvest all our profits in im-

proving our health system, and we provide

support to Uruguay’s public hospitals when

they need assistance.”

Investment opportunities in private and public healthcare

Uruguay’s healthcare system, which includes

both public and private facilities and services,

offers an outstanding opportunity for interna-

tional investors. Dr. Martinez says that invest-

ments in both healthcare infrastructure and

technologies are needed as the health system

works to meet growing demand in Uruguay.

Much progress has already been made. Dr.

Martinez concludes, “Uruguay’s healthcare

system has been reformed and is continu-

ally being improved. Today, thanks to the

changes put into practice, the system pro-

vides everyone in the country with access

to affordable healthcare, and our system

is one of the most universal, equitable and

technologically advanced in Latin America.

Asociación Española is totally committed to

healthcare reform in Uruguay.”

Asociación Española has

been known for innovation

since it became Latin

America’s first private

mutual health insurance

enterprise when it was

founded 158 years ago.


Asociación Española

Dr. Julio Martinez, CEO, explains, “Asociación

Española offers an integral healthcare system,

with more than 185,000 insured clients, 7,200

employees and 600 beds in our main hospital in

Montevideo. We cover the whole process of med-

ical assistance, from diagnosis to recovery, and

we offer all levels of healthcare service through

our clinics operating all over the country.”

Asociación Española serves both local and for-

eign clients, and many American residents of

Uruguay have chosen the organization as their

health-services provider thanks to its high

quality and reasonable costs. Asociación Espa-

ñola is well known, for example, for offering

the best pediatric healthcare in Uruguay.

www.espanola.com.uy


Leading Industrial Group Boosting EFICE has established 11 production facili-

ties which are interconnected, Chlorine &

Caustic Soda plant, Caustic Soda concen-

tration, Caustic Soda flakes plant, Chlorine

liquefaction, Sodium Hypochlorite plant,

Hydrochloric Acid plant, Calcium Chloride

& Calcium Chloride flakes plants, Ferric

Chloride, Roadtec and Aluminum Poli-

chloride plant. It sells its products on the

domestic market and throughout the MER-

COSUR region. EFICE is committed to im-

plementing the latest production process-

es and technologies in order to continue to

contribute to Uruguay’s economic growth

and to remain number one in its sector.

EFICE’s technological development and

know how are a source of national pride,

and its products are recognized as playing

a key role in improving the quality of life

of the people of Uruguay. For example, epi-

demics of diseases resulting from impure

drinking water, such as typhus and chol-

era, have finally been wiped out in Uruguay

thanks to EFICE’s chlorine.

EFICE continues to expand its activities

beyond Uruguay’s borders, and its exports

have been growing exponentially in both

value and volume. Nestor Gomez Alcorta,

President explains, “We are active in Chile,

Argentina, Paraguay and Brazil as well as

in Uruguay. For instance, our chlorine puri-

fies water in Uruguay and in some regions

of Brazil and Paraguay, providing more

than 15 million people with access to clean

drinking water. We also supply various in-

dustrial operations in Uruguay, including

cellulose plants, and some of that produc-

tion is exported to Brazil and Paraguay.”

Ambitious OMEGA project will triple production capacity

EFICE is currently involved in the very am-

bitious 10-year “Proyecto OMEGA” (OMEGA

Project), which focuses on technological

and management development and im-

provements in all the company’s activities

involving chlorine and soda production,

with the goal of making EFICE more com-

petitive in global markets. This project

was analyzed by the Government in the

frame of the Investment Law and was ap-

proved with the best qualifications and the

maximum tax exemption, confirmed by the

authorities with a specific sanction. Mr.

Gomez Alcorta says, “The OMEGA project

will expand our portfolio of new prod-

ucts based on chlorine and soda. On top

of that, the project involves tripling our

production capacity and expanding our

plants. OMEGA also aims to make EFICE

more energy-efficient, and we are in the fi-

nal stages of launching a wind-power farm

through which we will generate clean en-

ergy improving the energy balance of our

country and generating the same quantity

of energy needed in our project.”

EFICE is playing a major

role in driving the

development of Uruguay’s

industrial sector while

also benefiting local

populations. A 100

percent family-owned

enterprise founded more

than a century ago;

EFICE specializes in the

production of chlorine,

caustic soda and their

derivatives.

TRADE & INDUSTRY

EFICE


TRADE & INDUSTRY

www.efi ce.com.uy

As a major consumer of energy, EFICE’s

focus on energy efficiency and renewable

energies will have a wide-ranging impact

in Uruguay. The company is building a 100

MW wind farm in Uruguay’s Sierra de los

Caracoles region, near the country’s two

existing wind-power plants. The new plant

will support EFICE’s major expansion of its

production capacity through the OMEGA

Project.

Tremendous benefits for Uruguay

EFICE’s OMEGA project will have enormous

significance not only for the company but

also for Uruguay’s economy. “Thanks to

the achievements of the OMEGA project,

Uruguay’s exports will be increased by

more than U.S. $50 million and at the same

time the country’s energy imports will be

reduced, resulting in a savings of around

U.S. $100 million per year. Related benefits

include job creation. Because of the ben-

efits that EFICE’s OMEGA project will have

for Uruguay, the government has provided

us with assistance in this initiative. This is

a win-win situation for EFICE and for the

government,” Mr. Gomez Alcorta points

out.

With a track record of more than 100 years

of business success in Uruguay, EFICE is

committed to supporting the country’s so-

cial as well as economic development. As

Mr. Gomez Alcorta explains, “One of our

objectives as a company is to be socially

responsible, not only concerning our staff

but also with the community and the envi-

ronment. That is why EFICE has a strong

policy of maintaining pleasant working

conditions for all our employees and re-

specting them and their rights. In addition,

we are very involved in community-service

projects. EFICE was one of the founders in

Uruguay of the program PCRMA, or “Pro-

grama de Cuidado Responsable del Medio

Ambiente”, known globally as Responsible

Care. The program involves maintaining

the highest standards of quality in order to

ensure a safe environment for employees

as well as environmentally friendly pro-

duction processes.”

International partnerships

EFICE always adheres to the highest envi-

ronmental, health and safety criteria and

has obtained all the international quality

certifications applicable to its sector, in-

cluding ISO 9001:2008 certification. EFICE

is an active member of a number of inter-

national organizations in its sector. It has

also been a member of the international

Chlorine Institute since 1996, which was

founded in 1924, and is a technical trade

association of companies that are involved

in the safe production, distribution and

use of chlorine and derivatives. Its mem-

bers represent the complete value chain

from chlorine producers. On top of that

EFICE is also a founding member of the As-

sociation of South American Producers of

Chlorine and Soda (CLOROSUR), founded

in 1997.

Uruguay’s investment potential

EFICE will continue to support Uruguay’s

economic development. Mr. Gomez Alcorta

points out that his country offers a wealth

of advantages for foreign investors. He ex-

plains, “First of all, Uruguay has special-

ized human capital, with open mentalities

and is always looking for new challenges.

Secondly, Uruguay has a strong tradition

of entrepreneurship in all fields, and there

is a very productive relationship between

the private sector and the government

which has helped us develop our indus-

tries. Uruguay also has significant natural

resources, including wood, cattle and agri-

cultural land, and the government is very

committed to generating renewable ener-

gies, especially wind energies. Finally, Uru-

guay offers a very stable business environ-

ment with well-developed legal, political

and institutional entities. In other words,

Uruguay offers unique opportunities for

local and foreign investors.”

National Economy

24

INFRASTRUCTURE


Ministry Offering High-Potential Concessions for Infrastructure Projects

Minister of Transport Enrique Pintado ex-

plains, “Uruguay is very well placed to serve

as a logistics center and hub thanks to our

strategic location near fast-growing region-

al markets and to connections between the

Atlantic and the Pacific. To make the most

of these advantages, we are investing heav-

ily in our infrastructure.”

For its planned major infrastructure proj-

ects, Uruguay has budgeted around U.S.

$500 million in public financing and an

additional U.S. $600 million to be ob-

tained through public-private partner-

ships. Around U.S. $1.1 billion will be

invested in the country’s road network.

Minister Pintado explains, “We are going

to focus on road security through public-

private partnerships in which the private

sector will be in charge of managing nine

combination routes all over the country.

One project, for example, will be to in-

stall lighting along 280 kilometers (173.9

miles) of the main route between Argen-

tina and Punta del Este. All these invest-

ments need the cooperation of the private

sector, so we are calling on international

companies to come participate in the very

attractive concession opportunities we

will be offering.”

Improving road links to ports a top priority

The Ministry of Transport is in charge of

around 9,000 kilometers (5,592 miles) of

roads throughout the country. Minister Pinta-

do says, “Uruguay’s road network reaches all

towns in the country and we also have good

international road connections. However, to

reach our long-term goals, we have several

main priorities for our road system. These

include improving connections to our ports,

not only the port of Montevideo but also the

ports of Nueva Palmira, Fraybentos and Pay-

sandu on the border with Argentina.” At the

same time, the government is upgrading Uru-

guay’s ports, including rebuilding the port in

La Paloma in eastern Uruguay, which is the

country’s closest port link to Brazil, and ex-

panding port facilities in Montevideo.

Enrique Pintado urges international investors

to look into opportunities in Uruguay. He says,

“Uruguay has one of the best strategic loca-

tions in the region, between Brazil and Argen-

tina, giving Uruguay a unique advantage when

it comes to logistics and trade. We aim to con-

tinue to invest in making Uruguay a regional

logistic hub, and to reach this goal, we need

the involvement of the private sector.”

Uruguay aims to become

a key regional logistics

center and transport hub.

To reach this goal, the

Ministry of Transport is

working hard to upgrade

the country’s roads,

railways, ports and river-

transport system.

INFRASTRUCTURE

© Uruguay XXI

Carrasco International Airport, Montevideo


INFRASTRUCTURE

Local Construction Leader Known for World-Class StandardsRamón C. Alvarez S.A. is certified ISO

9001/2008 in quality management and ISO

14001/2004 concerning the environment, a

reflection of the company’s commitment to

quality.

Eduardo Alvarez, Managing Director, ex-

plains, “Ramón C. Alvarez S.A. takes part in

many public-private partnerships, including

infrastructure and road-construction proj-

ects for the government of Uruguay. Outside

the country, we have completed many proj-

ects in Brazil, among other markets.” Defin-

ing Ramón C. Alvarez’s competitive edge, he

adds, “My father founded the company and

we have been in business here in Uruguay for

50 years. Our clients are well aware of this

company’s high quality and expertise.”

When Ramón C. Alvarez founded the company

in 1957 he instituted a policy of always adher-

ing to the highest standards and continuously

investing in equipment, technologies, human

resources and skills. Today, Ramón C. Alvarez

S.A. is known for its world-class standards and

ability to successfully complete challenging,

diverse construction projects.

Road, bridge, airport and maritime construction expertise

The company’s specialized business units

focus on road and highway construction and

maintenance; bridges; airport runways; and

maritime and hydraulic projects. Ramón C.

Alvarez S.A. employs over 300 people and

operates a full range of heavy machinery,

specialized equipment, crushing plants and

concrete and asphalt production plants. The

company launched a special logistics unit in

2005 that focuses on transport services, in-

cluding of special loads and heavy machinery.

National leader in hydrocarbon waste management

For the past decade, Ramón C. Alvarez S.A.

has been a national leader in projects involv-

ing the management of hydrocarbon waste

and hydrocarbon-polluted water. The com-

pany handles the extraction, treatment and

final disposition of bilge water from ships at

the Port of Montevideo as well as other ports

around the country for Uruguay’s National

Port Administration, and since 2007 Ramón

C. Alvarez S.A. has been involved in extract-

ing waste from petroleum tanks to be used

as alternative fuel in industrial furnaces.

Ramón C. Alvarez S.A. also handles refuse

collection in some provinces of the country.

Ramón Alvarez welcomes more foreign com-

panies and investors to Uruguay. He says, “It

is very important for our country to bring in

new technologies and higher quality stan-

dards in many areas. As Uruguay improves,

our private sector will continue to grow, and

local companies like Ramón C. Alvarez S.A.

will benefit.”

For the past half century,

Ramón C. Alvarez S.A. has

been completing major

construction projects

that meet world-class

standards in Uruguay and

beyond. The 100 percent

Uruguayan company has

been involved in some

of the region’s most

prominent infrastructure

initiatives over the years

and currently has more

than 20 projects in the

works for both the public

and private sectors.

Ramón C. Alvarez S.A.

www.ramoncalvarez.com

27

AGRIBUSINESS


Diversified Agriculture Sector Stepping Up Exports

More than 80 percent of Uruguay’s surface

is arable land, and the country also offers a

temperate climate with ample rainfall as well

as modern transport infrastructure to get

products to domestic and foreign markets ef-

ficiently. Agriculture-based exports account

for around 65 percent of Uruguay’s total ex-

ports. In fact, Uruguay is the world’s seventh-

largest beef exporter, third-largest exporter

of ovine meat, and sixth-largest rice exporter.

Uruguay’s agriculture sector continues to

grow and diversify. While dairy products,

beef and rice top the list of the country’s

agricultural products, soy production has

risen by 48 percent per year over the past

eight years while the production of corn and

wheat has risen by 18 percent per year over

the same period.

Dairy industry growing rapidly

Uruguay’s dairy industry accounts for 9.3

percent of the country’s total agriculture

production value, putting it third after beef

and rice production. Uruguay has over 4,500

dairy farms that collectively produce 1.5 bil-

lion liters of milk per year, accounting for

0.3 percent of global milk production and 2

percent of global milk exports. Like Austra-

lia and New Zealand, Uruguay exports more

than 60 percent of its milk production. The

recent arrival of major foreign investments,

such as New Zealand Farming Systems, Sch-

reiber Foods and Bom Gosto, reflects inter-

national confidence in the Uruguayan dairy

industry.

Uruguay’s agriculture

sector has long been a key

contributor to the country’s

GDP and offers significant

investment attractions.

AGRIBUSINESS

© Uruguay XXI

Alimentos Organicos Uruguayos S.A.Ruta 75 Pando - Canelones Uruguay

PHONE +598 (2) 293 9519 - FAX +598 (2) 293 [email protected] - www.aorganicos.com


Uruguay XXI, the country’s investment and

trade-promotion agency, highlights the dairy

industry as one of Uruguay’s most attractive

investment opportunities. A recent report by

the agency notes, “The Uruguayan dairy in-

dustry has significant competitive advantag-

es and offers investment opportunities both

in primary and industrial production phas-

es. Production costs are among the lowest in

the world. Manufacturing opportunities also

exist in the dairy industry and include com-

pany consolidation, process and product in-

novation, and product and marketing mix.”

Uruguay’s dairy exports are mainly pow-

dered milk (53 percent) and cheeses (32 per-

cent). Exporters focus primarily on the Latin

American market. Growth opportunities in-

clude expanding exports beyond the region

and developing market niches, including

kosher and halal products, flavored cheeses

and organic dairy products.

The Inter-American Development Bank (IDB)

recently approved a U.S. $65 million loan for

Estancias del Lago SA, a Uruguayan privately

held agri-business company, to develop a

fully integrated dairy operation to export

powdered milk. The loan will help finance

the implementation of a highly-efficient

free-stall dairy facility as well as a pow-

dered-milk plant that will significantly boost

Uruguay’s powdered-mile exports. In line

with Uruguay’s efforts to promote environ-

mentally friendly agricultural practices, the

new dairy operation will use bio-digesters to

process cattle manure and capture methane

gas that will be used to produce energy for

the powdered-milk plant. The cattle manure

will also be used as organic fertilizer for

growing grains that will be used for feed and

biofuel production.

Targeted investment incentives

To stimulate investment in the agriculture

sector, Uruguay’s government has developed

AGRIBUSINESS

a number of incentives. One of these targets

investment in manufacturing agricultural

machinery and equipment, an activity which

is now exempt from 90 percent of corporate

income tax up to 2014 and 50 percent be-

tween 2015 and 2019.

Biofuel production is another growth area

benefiting from investment incentives. Com-

panies producing biodiesel and fuel-grade al-

cohol that have been authorized by Uruguay’s

Ministry of Industry, Energy and Mining may

receive an exemption on the wealth tax for

fixed assets, as well as a 100 percent exemp-

tion on corporate income tax for 10 years.

Forestry offers strong investment potential

Organic agriculture, food processing and the

forestry industry are other high-potential

investment possibilities. Concerning the

forestry sector, Uruguay’s weather and soil

characteristics ensure very good levels of

competitiveness on an international scale,

and the sector has a 20-year history with

qualified labor available. Exports of forestry

products currently account for 13 percent of

Uruguay’s total exports.

Exporting agricultural products from Uru-

guay will soon be streamlined. Archer

Daniels Midland Company (ADM), based in

Illinois, has announced it will build a port

terminal in Nueva Palmira to “connect South

American crops with global markets.” The

port will focus on handling exports of corn,

soy, wheat and soybean meal products to

markets in Europe, Asia, elsewhere in Latin

America and Africa.

Combating the effects of climate change

One challenge for the agriculture sector in

Uruguay is combating the effects of climate

change. In November 2011, the World Bank

approved a U.S. $49 million loan to help

Uruguayan farmers tackle climate change

by adopting environmentally sustainable

practices. The initiative will directly benefit

16,000 Uruguayan farmers, many of them

smallholders, and will include the creation of

a National Agricultural Information System.

Thanks to forward-thinking initiatives like

these, Uruguay’s agriculture sector is cer-

tain to continue to grow and to step up its

exports of top-quality products to global

markets.

© Uruguay XXI

30

TOURISM


Uruguay: A Natural Tourism ChoiceHector Lescano, Uruguay’s Minister of Tour-

ism, points out, “Tourism is now one of the

main engines for the sustainable growth of

our economy, accounting for 7 percent of the

country’s GDP. In 2009, Uruguay’s tourism rev-

enues reached around U.S. $1.3 billion and 2.2

million tourists entered the country, not count-

ing 350,000 cruise-ship visitors in Montevideo

and Punta del Este.” Argentina and Brazil are

Uruguay’s top tourism markets, but more and

more travelers from elsewhere in Latin America

and beyond are choosing Uruguay, particularly

in the northern hemisphere’s winter when Uru-

guay is warm and sunny.

Year-round vacation choice

Uruguay is definitely a year-round vaca-

tion choice, however, with diverse attrac-

tions located within easy reach of each

other. Uruguay offers picturesque Atlantic

beaches, rural tourism in unspoiled natu-

ral areas, natural-hot-springs spas, luxury

stays and health tourism in upscale Punta

del Este, executive travel and city breaks in

exciting Montevideo and Colonia, and cul-

tural attractions from UNESCO World Heri-

tage sites to world-class museums, restau-

rants and entertainment options.

With its gorgeous beaches,

safe environment, warm

temperate climate, well-

developed infrastructure,

exceptional luxury hotels

and resorts, welcoming

population, and wealth of

shopping, entertainment

and niche-tourism options,

Uruguay has become one

of Latin America’s top

tourism destinations in

recent years.

TOURISM

© Uruguay XXI

Instituto de Lenguas Extranjeras

Montevideo (ILE) offers a wide range of

courses in Spanish for learners of the

language from all over the world, both

in Montevideo and on a colonial farm in

Maldonado.

All ILE’s teachers are highly qualified,

with upper-level diplomas in linguistics

or language-teaching, and all are fluent

in at least one other language and have

traveled or lived abroad. ILE’s classes

take students outside the classroom in

visits to cultural and historic attractions

as well as to events that let students come

into contact with the people of Uruguay.


One recent investor in Uruguay’s tour-

ism sector is United States-based travel-

services provider Sabre Holdings. Yannis

Karmis, Sabre’s Vice President for Global

Customer Support, explains, “We first came

to Uruguay in early 2004 to create a global

customer-support center. We did an exten-

sive search of many countries all over the

world. Some of the key criteria we looked

at were economic stability, the safety of the

location we were in, the legal structure, and

the ability to do business in the country.

Language diversity was also very important

for us. Today, our operation here has be-

come the second-largest Sabre site after our

headquarters.”

Major tourist destinations

Uruguay’s main tourism destination is Mon-

tevideo, followed by the luxury resort of

Punta del Este, known for its exclusive bou-

tiques, fine restaurants and many multi-

TOURISM

starred hotels along a fabulous beach.

Beaches, in fact, are Uruguay’s most popu-

lar attraction, drawing 40 percent of all visi-

tors. The most-visited beaches are in Punta

del Este, Maldonado and Rocha, all of which

have warm water suitable for swimming,

hospitality and security, and diverse accom-

modations and entertainment.

Rural tourism is growing as well. Options

include country hotels, guest ranches, spa

visits and farm stays, all of which offer the

chance for visitors to explore the unspoiled

Uruguayan countryside and practice all

kinds of sports. The new U.S. $18 million

Altos del Uruguay golf club and hotel has

both a world-class 18-hole golf course as

well as a five-star spa based on local natu-

ral hot springs.

Other recent additions to Uruguay’s tourism

scene include the U.S. $15 million Carmelo

Golf operated by Four Seasons, which in-

cludes a residential development, a conven-

tion center and diverse sports and entertain-

ment options, all located among pine and

eucalyptus groves. The development is near

an international airport serving the highest

number of private flights in Uruguay.

Other new entries are the U.S. $100 million

Hotel Fasano and Las Piedras Villas devel-

opment, which opened in December 2010

in Punta del Este, featuring a golf course

designed by Arnold Palmer, and the U.S.

$40 million boutique Setai hotel and devel-

opment in José Ignacio, Maldonado, which

also includes a residential component. The

new U.S. $27 million Hotel Rivera Casino

Resort, on the Brazil border, has a four-star

hotel, a casino and a conference center.

In Montevideo, new hotels are opening al-

most daily. Sofitel is inaugurating its U.S.

$60 million Sofitel Montevideo Casino

Carrasco and Spa in 2012, just one of the

city’s headline-grabbing new hotel projects.

Investment in conference centers and other

business services is rising as well. Minister

of Tourism Lescano points out, “We have a

great interest in making Uruguay a leading

international conference destination.”

In all its tourism projects, Uruguay aims

to protect its natural and cultural heritage.

Minister Lescano says, “Our focus now is on

sustainable tourism. We are concentrating

on the environment and on quality tourism,

reflected in our new country brand, Uru-

guay Natural.”

© Uruguay XXI

The Ministry of Tourism and Sport’s National

Sustainable Tourism Plan for the period 2009 to

2020 “aims for Uruguay to be an internationally

recognized friendly and safe tourism destina-

tion that is committed to sustainable develop-

ment with quality services, qualified people and

full coordination among key sector players,”

according to the Ministry. Uruguay’s tourism in-

frastructure is steadily being upgraded; recently

completed projects include Montevideo’s new

airport and the Colonia River Terminal.

Significant attractions for investors in tourism

Uruguay has significant attractions for inves-

tors in tourism. The country’s proximity to Ar-

gentina (Buenos Aires in particular) and south-

ern Brazil ensures a constant inflow of tourists

year-round, while Uruguay also offers a stable

legal framework that promotes tourism invest-

ment through significant tax exemptions.


Modern Boutique Hotel in the Heart of Old Montevideo

Guillermo Delfino, General Manager, ex-

plains, “The boutique hotel concept is very

popular in Europe, which is one reason we

have so many European guests. In the big

chain hotels, staff can be less attentive, but

Don Boutique Hotel always puts guests first.”

Adjoining restaurant-filled Mercado del Puerto

Don Boutique Hotel is ideally located in the

heart of Montevideo’s Old Town (La Ciudad

Vieja) near the port, adjoining the vast Merca-

do del Puerto, home of some of the city’s fin-

est restaurants. One of these is Don Boutique

Hotel’s own restaurant, El Palenque, which is

highly rated for its grilled meats (a Uruguay

specialty) and fresh seafood.

The hotel is surrounded by pedestrian streets

lined with art galleries, shops, cafes and res-

taurants, museums and cultural venues.

“This is a unique hotel that has great rates,

particularly for a new property like this one

right in Montevideo’s picturesque city cen-

ter,” Mr. Delfino points out.

Housed in an Art Deco building that has been

completely modernized using the finest ma-

terials, including wood and marble, Don Bou-

tique Hotel has a lovely swimming pool and

solarium and a rooftop bar with a stunning

view of the city. All rooms are equipped with

wireless Internet access, individually con-

trolled air-conditioning, in-room safes that

can hold a laptop, and much more. Guests

can order breakfast from a menu and call on

the hotel’s staff to arrange special services,

including airport transfers.

Helping guests discover Uruguay

Don Boutique Hotel’s staff members are al-

ways ready to help guests discover Montevi-

deo and other attractions throughout Uru-

guay. “We help them choose places to visit,

find the best shops, get to the port and the

airport – in fact we do everything we can for

our clients,” Mr. Delfino explains. Most of

the hotel’s guests are tourism visitors, par-

ticularly in Uruguay’s high tourist season in

December and January.

Mr. Delfino urges visitors from the United

States to discover Don Boutique Hotel in

Montevideo. He says, “This hotel has all the

services travelers expect in a luxury boutique

property. The hotel’s architecture is beauti-

ful, and we have a very selective offering of

food and drinks. This is a perfect hotel in a

perfect location.”

Don Boutique Hotel

offers the personalized

service and welcoming

atmosphere that only a

small luxury hotel can

provide. The elegant

hotel has 21 guestrooms,

including one suite, and

attracts many European

visitors.

TOURISM

Don Boutique Hotel

www.donhotel.com.uy


Luxury Hotel Top Choice for Business Meetings

The Radisson regularly hosts high-profile international events, in-

cluding the International Development Bank’s governors’ congress

scheduled for March 2012. Arnaldo Nardone, Director Sales and Mar-

keting explains, “The Radisson’s adaptable meeting facilities can ac-

commodate around 2,500 delegates, and our very professional events

staff has organized 700 major conventions and more than 1,000 cor-

porate events over the past 15 years.”

The Radisson’s competitive edge is that in addition to state-of-the-art

meeting facilities, the hotel offers a range of luxury amenities and ser-

vices. These include Restaurante Arcadia, which specializes in gourmet

international and local cuisine and has spectacular city views. Guests

can also enjoy the hotel’s casino, convivial bar, spa, indoor semi-Olympic

pool, whirlpool, indoor jogging track, gymnasium, high-speed Internet

access in all rooms and Wi Fi in all public areas within the hotel.

The Radisson Victoria Plaza is ideally located within walking distance

of all Montevideo’s top sites, including government buildings, the

main business district, the port, the picturesque ancient city center

and all kinds of restaurants, cultural attractions and entertainment

options. Arnaldo Nardone predicts continued strong growth for the

Radisson Victoria Plaza and for meetings and leisure tourism in Mon-

tevideo, a true value-added destination.

The Radisson Victoria Plaza in Montevideo

offers world-class services for business

and leisure travelers in the heart of one of

Latin America’s most exciting cities.

Radisson Victoria Plaza

www.radisson.com

Unique Boutique Hotel Ranked

Number One in Punta del Este

The hotel is just a short walk from the high-end resort’s famous

beaches, trendy boutiques, restaurants, museums and art galleries.

Hotel L’Auberge was named Condé Nast Johansens’ “Most Excel-

lent Hotel, South America 2010” and has become a preferred choice

among discerning travelers from all over the world.

The hotel is well known for its unique architecture, which includes a pic-

turesque water tower that has been converted into elegantly decorated

guestrooms. Ignacio Carrera, Director, explains, “We have many interna-

tional visitors but would like to welcome more Americans. When they

stay in our hotel, we will make sure they fall in love with our country!”

With only 36 guestrooms, Hotel L’Auberge specializes in pampering

every guest. “Our staff members have all worked here for many years

and always give a warm welcome, calling each guest by name,” Mr.

Carrera explains.

L’Auberge’s amenities include a swimming pool, a lovely garden, a

gym, a spa, hot tubs and fireplaces, afternoon tea featuring Belgian

waffles served in a tea room overlooking the garden, and a restaurant

ranked one of the best in Punta del Este. For business travelers, the

hotel has a conference room for up to 30 people.

Hotel L’Auberge, a luxurious family-

owned boutique property, offers

exceptional amenities and personalized

service in the heart of a quiet, upscale

neighborhood in Punta del Este.

Hotel L’Auberge

Tel.: +598 4248 8888www.laubergehotel.com

TOURISM


TOURISM

World-Class Car-Rental Services from Global Leader

“Hertz is number one in serving tourism visi-

tors, particularly in countries in the MERCO-

SUR region as well as Europe and the United

States. Hertz Uruguay has opened offices in

all Uruguay’s leading tourism destinations,

including downtown Montevideo and at

Carrasco International Airport, downtown

Punta del Este and at Laguna del Sauce In-

ternational Airport, and at the Colonia bus

station near the port. We serve business trav-

elers, families, tourism visitors and a high

percentage of Hertz gold card members,” ex-

plains Victor Novogrebelsky, President.

In addition, Hertz has established commer-

cial agreements with the best hotels and

restaurants of Montevideo, Punta del Este

and Colonia. Hertz customers receive pref-

erential treatment and a discount of 10 to

15 percent on the total bill at any of these

establishments.

Hertz Uruguay is enhancing its services for

business travelers and especially for corpo-

rate clients, a rapidly growing market seg-

ment for Hertz in Uruguay. To best serve its

corporate clientele, Hertz Uruguay has imple-

mented a system to personalize services for

each company. Hertz is also opening more

offices all over the country, including in top

business areas.

At the same time, Hertz Uruguay will con-

tinue to provide world-class services for

tourism visitors and to help travelers from

all over the world discover Uruguay’s special

charms. Mr. Novogrebelsky points out, “The

tourism sector is playing an essential role

in Uruguay’s economic development, and in

fact tourism to Uruguay has been growing

rapidly in the last few years. More and more

travelers and tourism investors are discov-

ering what Uruguay has to offer. Uruguay

is very safe compared to other countries in

Latin America. In fact, Uruguay has long been

called the Switzerland of Latin America. As a

principal attraction we have Punta del Este,

ranked South America’s top vacation desti-

nation. Punta del Este has great beaches on

the Atlantic Ocean along with very luxurious

amenities and services, on par with Monaco’s.

Uruguay offers the tourist a warm welcome

and unique treatment. This is an incredible

country.”

Like every Hertz operation around the world,

Hertz Uruguay is known for its world-class

fleet of new vehicles, array of special offerings

tailored to each market segment, exceptional

24-hour customer support, free mileage, and

professional tourism services. Hertz also of-

fers a wide range of insurance options. “We

have agreements to obtain more vehicles if we

need them in peak periods, so that we will al-

ways be able to offer high-quality vehicles for

our customers,” Mr. Novogrebelsky says.

Defining Hertz Uruguay’s competitive edge

in Uruguay’s car-rental industry, Mr. Novo-

grebelsky says, “The service Hertz Uruguay

provides is well known to be the best in the

country. In addition, the Hertz brand sets

us apart from the rest and inspires trust in

our customers.” To potential customers in

the United States, he adds, “Uruguay is very

safe compared to other countries, not only in

Latin America but also in the world. Come to

Uruguay and explore our beautiful country.”

Global car-rental leader

Hertz has been active in

Uruguay for the past 15

years and has become

a key driver of the

country’s fast-growing

tourism sector.

Hertz

www.hertz.com.uy

WSMR Uruguay

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