UPM-Kymmene strengthens its market positionby acquiring four builders merchants in Denmark

ANCO Træ A/S, a UPM-Kymmene subsidiary, has signed a contract with the Danish timber merchant H. Reimar Nielsen Holding A/S for acquiring the shares of companies Silkeborg Tømmerhandel A/S, Kjellerup Tømmerhandel A/S, Galten Tømmerhandel A/S and Trælastimporten i Århus A/S which are currently owned by H. Reimar Nielsen Holding A/S. The signing of the contract took place on 30, August 2000 and the takeover is expected to be completed by 30, September 2000. The four companies will become part of the ANCO Group.

Silkeborg Tømmerhandel A/S, Kjellerup Tømmerhandel A/S, Galten Tømmerhandel A/S and Trælastimporten i Århus A/S concentrate in merchanting of wood-based products and other building materials. The companies are located in the central and east Jutland. The main customers are joinery manufacturers, carpenters and contractors. In 1999, the companies had a total turnover of DKK 294 million (EUR 39 million) and 132 employees. All employees will be transferred to the ANCO Group.

ANCO Træ A/S, founded in 1921, is one of the leading builders merchant chains in Denmark. Currently the company has three outlets in Denmark: at Herlev, Haderslev and Skive. The company runs following activities: supplying of sawn timber and plywood and merchanting of wood-based and other building materials. ANCO Træ A/S´ main customers are industrial end users and importers of sawn goods and wood-based panels, contractors, joinery manufacturers and carpenters. In 1999, ANCO Træ A/S had a turnover of DKK 634 million (EUR 85 million) employing 98 people. ANCO Træ A/S is a part of UPM-Kymmene Wood Products Division.

"The acquisition of the four companies offers ANCO Træ A/S an opportunity to expand its business and strengthen the company´s market position. By expanding the geographic coverage we are able to improve our customer service. Especially our nation-wide customers will certainly benefit from this. This will also improve the marketing of UPM-Kymmene sawn timber and plywood products in Denmark", says Freddy Strand Larsen, Managing Director of the ANCO Group.

ANCO Træ A/S is a part of UPM-Kymmene Wood Products Division which is Europe's largest plywood manufacturer and one of Europe's biggest producers of sawn timber. In 1999, the division produced almost two million cubic metres of sawn timber and around 730,000 cubic metres of plywood. In addition to Anco Træ A/S, UPM-Kymmene Wood Products Division comprises United Sawmills Ltd, Schauman Wood Oy, Puukeskus Oy (Finland) and Brooks Group Limited (Ireland and Great Britain). UPM-Kymmene Wood Products had a turnover of EUR 1.3 billion in 1999 and has 6,700 employees.

For further information please contact:
Freddy Strand Larsen, Managing Director, ANCO Træ A/S, tel + 45 44 94 40 66

UPM-Kymmene Wood Products
Communication
31, August 2000