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CASE 4: Botnia

GROUP 7
PRESENTED BY-

TASMINUR MANNAN ADNAN

MOHAMMAD SHAKILUR RAHMAN

RAHAMAT ULLAH

MD IRFAN UZZAMAN

MD SAIFUL ISLAM
MAZEN ABDULLAH AL-GUNAID
INTRODUCTION

Metsa-Botnia Oy is Europes second largest pulp producer

Botnia decided to build a new pump mill in Fray Bentos, Uruguay

Pump mill plan is located at the border river of Argentina and Uruguay

With $1.2 billion investment in the mill, this is the biggest industrial investment in Uruguay

Fray Bentos was selected considering the area, the environment, availability of wood raw material, pulp
logistics and socio-economic impacts

Uruguay government welcomed this project considering their economical benefits

This project was opposed by Argentine Government and CEAG

Project has faced some major challenges during different period


STAKEHOLDER ANALYSIS

Key Stakeholders Other Relevant Stakeholders


Metsa-Botnia Ltd. Labor Union

Uruguayan Government ENCE

Argentine Government Finnish Government

CEAG Media

IFI NGOs

Local People of Fray Bentos Suppliers


STAKEHOLDER ANALYSIS
STAKEHOLDER ANALYSIS
Stakeholders Interest:

- Metsa-Botnia: Economical benefit interest through set up a new mill

- Uruguayan Government: Supported due to environmental and economic interests as foreign investment
improve economy

- Local People of Fray Bentos: First opposed then later supported due to economical interest through
employment

- Argentine Government: Opposed the project due to negative environmental impact

- CEAG: Opposed the project due to negative environmental impact

- IFI: Neutral, political interest of World Bank through accepting loan

- Finnish Government: Neutral position

- Labor Union: Supported due to employment creation


SUSTAINABILITY MANAGEMENT

Sustainability management strategies used by Metsa-Botnia:


Metsa-Botnia indirectly supported the mediating taken by catholic church representatives and peace
prize winner Adolfo Perez Es
quivel.
Using technology called ECF (Elemental Chlorine Free) bleaching, which is the best available technology
and adopted by United States and European Union.
Reinforced communication department to better address the communicational challenges of the
project.
Invited opponents representatives to Finland to acquaint them about the friendliness of Finnish paper
industry. This was an approach of Metsa-Botnia to make a better bonding with the stakeholder.
SUSTAINABILITY MANAGEMENT

Characterizing the sustainability management from Botnia case


Sustainability management has 3 branches: Environment, Economy and needs of future generations. In the
Metsa-Botnia case, all these functions were considered.
Reason behind building pulp mill in Uruguay was that it was considered as a politically stable country.
Politically stable country is counted as an economically sound country. The political conflict between
Argentina and Uruguay due to the pulp mill was mostly a mediatized conflict. It has received extensive
level of media interest.
In Botnia plant; Metsa group emphasized on the environment by adapting the best technology that
wont pollute the shared river.
Besides, this project at Frey Bentos will increase Uruguays GDP by 1.6% and create 8000 jobs for them.
MAJOR CHALLENGE

Important Challenges :

Public opinion of local community against Botnia project

Project location in a border area between two countries and river which is shared by the two countries
and is protected by a treaty ( Argentina and Uruguay)

The political Risk of escalating international problem touching also other countries (Finland)

Project continuation without the supplies, resources and services from Argentinian side

Losing the support of financial parties and their concerns about their investment in risky situation
MAJOR CHALLENGE

Reasons for Facing Challenge :

Insufficient information at the Argentinean side.


Argentinean local stakeholders did not heavily involve, engage and consult by the socio-economic
impacts .
The preparatory communication and information concentrated on Uruguayan stockholders and not
Argentina.
The information sessions in the Argentinean side was poor.
There was a history of opposition of similar projects.
MAJOR CHALLENGE

Manager's Role for Tackling Challenge :

Botnia should have invested earlier before commencement of the project in making public awareness
among local community of Gualeguaych of the benefits and opportunities that the project will provide
to the area and that it will not affect the tourism business of the town

It should have been also part of the Argentinian stakeholder ( contractors, companies) responsibility to
take proactive actions as there was a history with similar project

Botnia relying on international party's opinion and the problem was not directly with Argentinian
government but the problem mainly was with the local community and organizations. They should have
solve the problem with the involvement of Argentinian government as well as international parties.
Key Learning for future

Have to think about respected countrys political situation during set up a big manufacturing company

because it will affect a lot in a long run.

If any organization want to install a manufacturing factory in a border position between two countries then
they should concern about both countries all rules and regulations about environmental cleanliness.

Should appoint some multitasking and high profile person from both countries because they know their
respected countries rules very well.

Should justify or analyze their plan in the respected country before installation the company. Such as, they

can do some intensive survey among all over the people as well as among political parties, what they think
about the proposed project?

Should aware about the respected countries media. Because any time can happen some scandal about the

project and it will spread all over the world through strong and tricky media.
UNANSWERED QUESTIONS OF THE CASE

No clear evidence of the study on Argentine government, local people, the political and economical relation between
Uruguay and Argentina from the case
The internal strategies of Metsa Botnia after knowing the earlier protest against Spanish Company Ence was not discussed in
the case
The company has considered the protest of Argentines in their risk factors or not; this view is quite unclear
In spite of being a controversial area, why Metsa picked this spot for the plant?
Media could have been a major shield of Metsa-Botnia but from the study it is reflected that the company has not utilised it
for their advantage. Why is that?
EVALUATION OF THE SOLUTION
Strengths

Analysed all questions with proper context


Followed the given resources properly
Applied Stakeholder categorization framework
Applied project management knowledge

Weakness
Analysis is done based on own perceptions following the resources
Only key stakeholders list is presented
EVALUATION OF THE SOLUTION

Problem faced in the solution

Finding the stakeholder interest was challenging


Too many reading article have to followed to find out the solution

Team Work

Task was discussed among the group members and divided accordingly
Set the deadline for individual task
Make the final review after completing each one task
REFERENCES

Olander, S. and Landin, A., 2005 Evaluation of stakeholder influence in the implementation of
construction projects, International Journal of Project Management, vol. 23, pp. 321-328.
Winch, G.M., and Bonke, S., 2002, pp. 385-403: Project stakeholder mapping: Analyzing the interests of
project stakeholders, in Slevin, D.P., Cleland, D.I., Pinto, J.K. (Eds), The Frontiers of Project Management
Research.
Aaltonen, K. and Kujala, J., 2016. Towards an improved understanding of project stakeholder landscapes.
International Journal of Project Management, vol. 34, 8, pp. 1537-1552,
Aarseth, W., Ahola, T., Aaltonen, K., Okland, A., Andersen, B., 2017. Project sustainability strategies: A
systematic literature review, International Journal of Project Management, 35, 1071-1083
L. Porras, 2016, Master's Thesis: Stakeholder Opposition: In a Foreign Direct Investment: Case Botnia Pulp
Mill Uruguay

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