UPM's Pestovo Sawmill celebrates its first million cubic metres

(UPM, Moscow, February 5, 2010) - By the end of January 2010, one million cubic metres of sawn timber were manufactured at UPM's Pestovo Sawmill. UPM celebrates this significant milestone by giving recognition to the best employees.

"The Pestovo Sawmill has an excellent track record during its five year history. Thanks to the good work of the mill's employees and continuous development of the operations, we celebrate today the milestone of one million cubic meters of high quality sawn timber. I am also pleased about the fact that the quality of the timber meets the requirements of our demanding customers," - states Tuomo Visanko, Senior Vice President, Forest and Timber Business Area.

The Pestovo Sawmill is located in Novgorod Oblast in Russia. Its construction began in 2002 and production started in May 2004. The production capacity of the sawmill is 260,000 m³ and the capacity of the Further Processing Mill, which started operations in 2006, is 40,000m³. Pestovo produces both spruce and pine sawn timber, with the main wood species being spruce.

The operations of the mill have been constantly developed. The latest modernisation was completed in 2009 allowing the expansion of the moulded wood products range, including high quality panels for interior and exterior decoration. The products are marketed through UPM's global sales network and the main markets are Russia, Europe, the Middle East and the Far East.

UPM's Pestovo Sawmill is one of the most modern sawmills in Russia. Quality control covering the entire process guarantees consistent high quality of all products. In 2009, there was an audit of the Management System of the Pestovo Mill conducted by external auditors Den Norske Veritas. The ISO 9001 and 14001 certificates are expected to be granted in March 2010.

Special attention at the mill is paid to the Occupational Health and Safety as well as environmental issues. Wood is a renewable raw material and all products manufactured from it can either be reused or recycled. The by-products generated by the sawmill and further processing mill can either be exploited as raw material for other products or used as biomass fuel in energy production. Chips and sawdust generated in the sawn timber production process are used as raw materials for chemical pulp. Bark is employed by the local power plant to produce energy. In 2009, the Pestovo Sawmill was acknowledged as the best enterprise in the area of Occupational Health and Safety among the local production sites.

The Pestovo Sawmill and Further Processing Mill employ about 200 employees.

For further information please contact:
Mr Vladimir Ivanov, General Director, UPM Pestovo, tel. +7 81669 55539.