The foundation stone for UPM's Kymi pulp mill´s chemical recovery plant laid in Kuusankoski

(UPM, Kuusankoski, January 17, 2007) – A major construction project has proceeded in Kuusankoski, Finland, according to the timetable. The project began last spring and the aim is for the new, single-line recovery plant to go on stream by summer 2008. The foundation stone of UPM Kymi pulp mill’s chemical recovery plant was encased on 17 January 2007.

The construction of the new recovery plant is the biggest ongoing investment project not only for Kymi and UPM but also for the whole Finnish forest industry. The investment is valued at EUR 325 million and involves the replacement of two outdated chemical recovery lines by one modern line.

The investment will secure the pulp supply of Kymi paper mill and ensure Kymi’s development as a competitive integrated fine paper mill. The mill’s annual production capacity will exceed 900,000 tonnes once the investment is completed.

This investment will allow Kymi to increase the energy self-sufficiency of the integrated pulp and paper mill, to lower the manufacturing costs and to reduce the impact on the environment, for example in terms of fossil carbon dioxide emissions. The new plant will enable to increase the use of biofuels and to double bio-electricity production capacity. This investment is an important part of Kymi’s renewal programme along with the introduction of new operating models.

UPM´s President and CEO Jussi Pesonen stated in his speech that the project is of high importance to UPM in a new operating environment that requires greater competitiveness and profitability in a new business environment. The energy efficiency has become a significant competitive factor. UPM has consistently improved its energy efficiency through investments in Finland and in the other countries in which it operates.

According to the President, UPM Fine and Speciality Papers, Matti Lievonen, fine papers are part of UPM’s core business. The Kymi mill investment will strengthen the development of this business area and strengthen its profit-making capacity. UPM is a major player in the European fine paper industry. The reconstruction of Kymi puts the company in an even better position to become the best performer in the industry.

The greetings of the Finnish Government were presented by Minister of Trade and Industry Mauri Pekkarinen.

Chemical recovery is one of the main processes of pulp production. The recovery plant is used to recover the chemicals used for cooking chemical pulp and to return them for re-use. At the same time, the energy from the wood dissolved during cooking can be utilised.

For further information please contact:
Mr Matti Haukijärvi, Vice President and Project Director, UPM, tel. +358 40 543 2901