Some 30 Research and Development professionals will move to UPM's paper divisions R&D center in Lappeenranta, Finland

The effects regarding the concentration of UPM's paper divisions Finnish Research and Development in Lappeenranta have been clarified in Lappeenranta, Pietarsaari, Valkeakoski and Kuusankoski. Due to the centralizing, Pulp Center (PC), the R&D Center for chemical pulp in Pietarsaari (PC) will be closed. The test machinery for chemical pulp cooking, bleaching and washing and the related personnel will be transferred to Wisaforest organisation's Wisa Center service unit. The fine paper R&D center (FRC) in Kuusankoski will be closed on December 31, 2004. The R&D center in Valkeakoski will be transferred to Lappeenranta in three stages by summer, 2005.

Some 30 R&D professionals will move to Lappeenranta new R&D center. Some 25 people will be transferred to operative R&D functions that mainly serve local mills and some 20 people will retire. Alternative solutions will be sought for some 25 people in cooperation with the personnel and their representatives by summer, 2005. After the concentration 130-150 people will work in the new R&D center.

The new R&D center in Lappeenranta will be called UPM RC.

Furthermore, following appointments have been made in the new UPM R&D Organization:

Mrs. Eeva Jernström will continue as Research Director, R&D and she will act as deputy to Pekka Hurskainen, Vice President, R&D

Mr. Peter Sandås, Manager of Product Marketing at North America Service Center has been appointed Portfolio Director, R&D as of August 1, 2004.

Mr. Timo M Koskinen, currently R&D Manager has been appointed Director of External Relations, R&D as of April 1, 2004.

All persons will be based in Lappeenranta, Finland and will report to Mr. Pekka Hurskainen, Vice President, R&D.


For more information, please contact:
Mr Pekka Hurskainen, Vice President, R&D, UPM, tel. +358 204 15 4261
Ms Eeva Jernström, Research Director, UPM, tel. +358 204 15 5171


UPM
Corporate Communications
March 18, 2004