Raflatac, a unit of Finnish paper giant UPM-Kymmene, opens first U.S. manufacturing center

FLETCHER, NC - October 29, 2001- Raflatac, Inc., an operating unit of Finland-based UPM-Kymmene Corporation (NYSE: UPM), today opened its first North American facility, a $50 million self-adhesive label-stock manufacturing center.
The plant, based in the Broadpointe Industrial Park here, will produce paper-based and synthetic pressure-sensitive label stock.

Raflatac is one of the world's leading suppliers of paper-based and synthetic pressure sensitive labelstock. Raflatac has eleven factories on five continents and a wide network of terminals and sales offices throughout the world. The company employees more than 1,900 people with net sales of $630 million in 2000.

The company expects the plant to add $115 million in annual sales once it is fully operational. It employs 180 workers. The plant is located near the Asheville Regional Airport.

"We are pleased to announce the opening of this state-of-the-art facility, which will significantly increase our presence in the U.S. market," said Juhani Strömberg, president of Raflatac. "We are very pleased with the assistance and support we have received in setting up this plant in North Carolina, and have been impressed by the quality of work force we have been able to attract. We are confident our factory here will be a great success."

The 225,000 sq. ft., custom-built facility includes a laminator, automatic warehousing, facilities for adhesive manufacturing and slitting operations. The primary market for the factory's output will be North America.

Juha Niemelä, CEO of Raflatac's parent company UPM-Kymmene, said, "Raflatac is among the leading specialty companies in its field, and we believe this new plant will enhance its position in the critical North American market considerably. We look forward to the contributions this facility will make to Raflatac's performance and welcome its employees to the UPM-Kymmene family."

Raflatac Group In Brief
One of the world's leading suppliers of paper-based and synthetic pressure sensitive label materials, Raflatac develops and manufactures self-adhesive constructions for a wide range of requirements in product and information labeling. The company has over 1,900 employees worldwide and its net sales in 2000 were $630 million.

Raflatac, a unit of UPM-Kymmene Corp. (NYS: UPM), one of the largest paper and forest products supplies pressure sensitive roll labelstock to converters and printers, and sheet stock through paper merchants. In addition to the United States, the company has factories in Finland, France, the UK, Germany, Spain, Malaysia, South Africa, China and Australia, and a wide network of terminals and sales offices throughout the world.