UPM Raflatac opens USD 100 million labelstock manufacturing facility in Dixon, Illinois, USA

(UPM Raflatac, Tampere, April 3, 2008) - UPM Raflatac celebrates the opening of its new North American pressure sensitive labelstock manufacturing facility in Dixon, Illinois, approximately 100 miles west of Chicago. The new USD 100 million (EUR 70 million) facility will offer UPM Raflatac's full product range of paper and film label products and features the company's latest proprietary technical solutions in both the coating and finishing areas.

"Our mission is to continuously develop our product offerings and service concepts and provide substantial value to our label printer customers. The Dixon factory is one of the key strategic investments we have made to increase our capabilities and build capacity in North America, Europe and the Asia-Pacific region," says Heikki Pikkarainen, President of UPM Raflatac. "With the new facility we're further enhancing our service capabilities to remain our partners' number one choice in the important North American market."

With its end-to-end automation, the Dixon factory will be the most innovative labelstock production and distribution facility in the industry.

"We’re excited to bring our new processes, new technology and new people to the Midwest market," says Jouko Lähepelto, Senior Vice President, Americas. "The new Dixon factory will significantly enhance our capabilities to serve this marketplace and to further develop our business here."

UPM Raflatac has been present in North America since the company began sales and slitting operations in Fletcher, North Carolina in 1985 – until 2001, when the company began production operations at its first North American manufacturing facility in Fletcher, North Carolina. The company further strengthened its North American product and service network by opening slitting and distribution terminals in Ontario, California and Wilkes-Barre, Pennsylvania in 2001 and 2004 respectively. In 2005, UPM Raflatac opened its first U.S. RFID tag and inlay production facility in Fletcher.

UPM has invested significantly in the global expansion of its self-adhesive label materials business in the past years. This new factory is an essential part of a nearly USD 270 million (EUR 200 million) worldwide investment program.

For further information please contact:
Mr Heikki Pikkarainen, President, UPM Raflatac, mobile +358 40 760 5758
Mr Jouko Lähepelto, Senior Vice President, Americas, UPM Raflatac, mobile +1 828 275 0243

UPM is one of the world’s leading forest products groups. The Group employs around 26,000 people and in 2007 made sales of EUR 10 billion (USD 14 billion). UPM’s main products include printing papers, label materials and wood products. The company has production units in 14 countries and its main market areas are Europe and North America. UPM’s shares are listed on the Helsinki stock exchange and the company has an ADR program on the OTC market in the United States. www.upm-kymmene.com

UPM Raflatac, the Label Division of UPM, is a world-leading supplier of self-adhesive label materials for a wide variety of needs in product and information labeling. In addition, UPM Raflatac is at the global forefront in the development and high-volume production of HF and UHF radio frequency identification (RFID) tags and inlays. UPM Raflatac has around 2,700 employees and made sales of approximately EUR 1 billion (USD 1.4 billion) in 2007. UPM Raflatac has a global service network consisting of 12 factories on five continents and a broad network of distribution and slitting terminals and sales offices worldwide. Further information is available at www.upmraflatac.com.