Diminishing concessions in federal government-controlled forests in the United States are forcing pulp and paper companies to look for greener pastures outside the us. Such is the case of Boise Cascade, an us- based pulp and paper group. They have been given the green light to build one of the world's largest oriented stand board plants in Southern Chile after a long court battle with environmental and industry groups.

Environmentalists have objected to the amount of native forest needed to keep the plant operating at full capacity. Salmon breeders, near the farmers plant site, about 20 kilometre south-west of Puerto Montt, are also concerned about ship movements in and out of the new docking facility.