A day of celebration for UPM's Pestovo sawmill in Russia

UPM's Pestovo sawmill in Russia celebrates its inauguration today. The sawmill, which produces sawn whitewood, has an annual production capacity of 300,000 m3 and currently employs 100 people. Construction of the sawmill began in spring 2003, and production started up this spring. The cost of the investment is 50 million euros.

The Pestovo sawmill is a single-line circular sawmill. Most of the production will be exported, mainly to European and Asian markets, and raw material will be supplied by the sawmill’s own wood procurement organisation. A timber depot has been built in the vicinity of the sawmill to back up wood supply to both the sawmill and UPM’s Finnish mills.

"Active operations in Russia are one of the strategic choices of UPM’s Wood Products Division. Russia provides us with good opportunities for wood processing and developing our industry," says Harald Finne, President of the Wood Products Division.

The sawmill, which is located in the region of Novgorod, was built in co-operation with ZAO Novgorodlesprom, a Russian joint venture company that specialises in wood processing and procurement. UPM has a majority holding in the sawmill. The parties also have birch plywood and veneer mills in the city of Chudovo in Novgorod. With the addition of the Pestovo sawmill, UPM now employs 700 people in Russia.

For further information, please contact: Harald Finne, President, UPM, Wood Products Division, tel. +358 (0)40-519 1951.

UPM, Wood Products Division
Communications/miia.narekorpi@upm-kymmene.com
May 5, 2004