UPM-Kymmene to build a new fibre pulp facility in Shotton

UPM-Kymmene Corporation will invest EUR 127 million in a new Recycled Fibre Pulp facility at its Shotton Paper Mill site in North Wales. The UK Government's Waste & Resources Action Programme has awarded a financial support to the project. The investment will convert Shotton Paper, the UK's largest newsprint mill, to 100% recycled fibre.

The new Recycled Fibre Pulp Mill will require an additional 320,000 tonnes per annum of recovered newspapers and magazines. This will involve nearly 4 million additional households in the new Local Authority recycling schemes helping to achieve the total quantity of recovered fibre utilised at the Shotton Mill to 620,000 tonnes per annum. The new collections will be sourced primarily from Local Authority areas where there are currently low levels of paper recovery from the waste stream, and therefore supports the UK Governments waste strategy objectives.

The new Recycled Fibre Pulp facility is scheduled to be commissioned in September 2003, with full production achieved by April 2004. To ensure the efficient flow of recycled fibre from the new Local Authority recycling schemes, contract agreements and collection development will commence immediately.

This investment creates further opportunity for UPM-Kymmene to achieve its business objective of economic growth based on the principles of sustainability, which complements a wider economic, environmental and social agenda of the UK Government, whilst simultaneously ensuring the optimal use of the UK's fibre resource.

For further information, please contact:

Mr Martin Gale, Managing Director, UPM-Kymmene (UK) Ltd.,
tel. +44 1244 284 101, email martin.gale@upm-kymmene.com

Dr Hartmut Wurster, President, Newsprint Division, UPM-Kymmene,
tel. +49 82 131 09243, hartmut.wurster@upm-kymmene.com

Mr Erkki Puru, Development Director, UPM-Kymmene,
tel. +358 0204 16 7214, email erkki.puru@upm-kymmene.com

UPM-Kymmene Corporation
Corporate Communications
14 January, 2002