Montevideo, Uruguay, 13 October 2008 -- (AP) -- Uruguay's president Tabare Vasquez said Portucel Soporcel Group, a Portuguese paper company, will spend more than USD 4 billion on a pulp plant and port in Uruguay. The president says the investment from will help stem contagion from the world financial crisis.

The company plans to build a paper and cellulose plant and deep-water port in an as-yet undisclosed location. A Portucel spokesman could not be reached for comment.

Vazquez on Monday said Uruguay is "concerned but not alarmed" by the financial crisis and could tap its US$9 billion in currency reserves to ease credit and boost lending.