UPM-Kymmene to start negotiations on closing down a paper machine and a stone groundwood plant at Voikkaa, Finland

UPM-Kymmene is today starting discussions with employee representatives with a view to closing down paper machine number 17 and the old stone groundwood plant at Voikkaa paper mill in Finland. The discussions concern 175 persons working at the mill. The possibility of finding employment for these persons in Voikkaa's other departments and at UPM-Kymmene's other mills will be investigated.

PM 17 was originally built in 1936 and is now at the end of its life cycle. It specializes in the production of book paper marketed under the name UPM Book. The machine has an annual capacity of 100,000 tonnes. It is planned to close the machine down on May 1, 2004. The cost of the closure will amount to EUR 16 million, comprising roughly EUR 9 million in fixed assets and around EUR 7 million in other costs.

Two paper machines (PM 11 and PM 18) and the pressure groundwood plant will remain in production at Voikkaa mill. The two paper machines have a combined annual capacity of 400,000 tonnes of coated magazine papers.

For further information please contact:
Raimo Särkelä, Mill Director, UPM-Kymmene Voikkaa, tel. +358 204 15 3361
Markku Taavitsainen, Senior Vice President, Newsprint and MFS Operations, UPM-Kymmene Newsprint Division, tel. +358 40 503 9924
Harald Finne, Executive Vice President, Human Resources and Information Technology, UPM-Kymmene, tel. +358 204 15 0009

UPM-Kymmene Corporation
Corporate Communications
September 1, 2003