The factory is to bring more than 100 jobs to the economically-strapped town on the south-west coast. The newspaper says the site was selected through a hard-fought international bidding process.
The facility is to be built over the next year and a half with international financing. Investments could run into hundreds of millions of euros. Details are to be officially announced this month.
The factory will reportedly produce soy products for use as food, animal feed and biofuel. Some 400,000 tonnes of soybeans are to be brought in annually through the Hepokari port.
Uusikaupunki is home of Valmet Automotive, which produces Porsche convertibles and Garia electric golf cars, and will soon begin manufacturing Fisker Karma hybrid sports cars.
The port city lies 70 kilometres north-west of Turku.