UPM's Tikhvinsky Lespromkhoz successfully passes FSC forest management audit

(UPM, Helsinki, December 12, 2006) – UPM's Tikhvinsky Lespromkhoz in Russia has successfully passed a FSC forest management certificate audit for 184,000 hectares of forest leased by the company. The assessment was carried out by the auditing company SGS Vostok Limited according to international FSC principles and criteria. The auditor recommends to FSC's decision making bodies to grant the certificate.

During 2006 in Russia, UPM has focused on developing its logging company ZAO Tikhvinsky Komplexny Lespromkhoz. Part of the work has been getting its forest management and wood sourcing practices to fulfil the criteria of the international forest certification standards. The development areas have been occupational health and safety as well as accident prevention, environmental issues, wood procurement, forest management planning, administration and staff training.

The successful efforts of the Tikhvinsky Lespromkhoz staff have been supported by several key stakeholders including researchers, authorities and local stakeholders.

"The certification of our forest management practices in Russia is the first step towards getting certified products available from UPM's Russian mills. It also supports our aim of increasing the share of certified wood in our products across the Group," explains Mr Juri Orlov, General Director of Tikhvinsky Lespromkhoz on the rationale behind the project.

"The next step in this process will be to apply for the FSC chain of custody for our Russian forestry and wood sourcing organisation and mills," states Mr Juhani Hongisto, Director, responsible for UPM forestry and wood sourcing in Russia.

UPM aims at increasing the amount of certified wood in its products and ensuring credible control of the origin of wood through the whole supply chain from the forest to the customer. The basis for this is forest certification thus UPM supports all credible forest certification schemes like FSC and PEFC.

For further information please contact:
Mr Juhani Hongisto, Director, Forestry and Wood Sourcing, Russia, UPM, tel. +358 40 847 6730 or +7 921 920 8470
Ms Päivi Salpakivi-Salomaa, Director, Environmental Forestry Affairs, UPM,
telephone +358 204 162 162 or +358 400 754 748

Notes for editors:
UPM is one of the world’s leading forest products groups. The Group's sales in 2005 were EUR 9.3 billion, and it has about 30,000 employees. UPM's main products include printing papers, converting materials and wood products. The company has production plants in 15 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges.

UPM has a global forestry and wood sourcing organization to secure wood supply to its different mills as well as to manage company forests. The company owns and manages forestry land in Canada, Finland, Russia, the UK and the USA.

In Russia UPM's forestry and wood sourcing company, UPM Forest Russia, purchases about 5 million m³ wood annually from UPM's own logging company, Tikhvinsky Lespromkhoz acquired in November 2005 and from about 200 independent logging companies and specialised trading companies. Most of the wood comes from Karelia, Leningrad, Vologda and Novgorod areas. About 4 million m³ of the wood is used at UPM's mills in Finland. The rest is processed at UPM's Pestovo saw mill and Chudovo plywood and veneer mills in Russia and at Otepää plywood mill in Estonia. UPM supplies wood in Russia also to Svir Timber owned by Botnia, UPM's associated company.

Further information on
– UPM at www.upm-kymmene.com and www.upm-kymmene.com/traceit
– FSC at www.fsc.org
– PEFC at www.pefc.org
– SGS at www.sgs.com