UPM celebrates the completion of the new fine paper machine at Changshu mill in China

UPM has today celebrated the completion of the new fine paper machine at the Changshu mill in China which increased the Group's total investment in China to over 1 billion US dollars. The celebration ceremony was lead by Mr Matti Vanhanen, Finnish Prime Minister. The company addresses were given by Mr Jussi Pesonen, President and CEO of UPM as well as Mr Hannu Jokisalo, Vice President & General Manager of the mill.

The new fine paper machine at UPM's Changshu mill has started-up 4 weeks ahead of schedule on May 24. After the investment, UPM has become the biggest producer of uncoated fine papers in China. The new paper machine is the world's biggest and fastest paper machine producing uncoated fine papers. The new machine more than doubles UPM's fine paper capacity in China. The first paper machine at Changshu started production in 1999.

"This has been a remarkable project for the Changshu mill and the whole of UPM. We can now celebrate the most modern and fastest fine paper machine in the world. The machine was completed in record time and it is the best of its class in terms of technology for making office and printing papers. In addition, our personnel at the mill are extremely qualified. The start-up of the new machine has proceeded well and the feedback received from customers has reinforced our expectations," says Jussi Pesonen, President and CEO of UPM.

Two thirds of the mill's production is sold through UPM's sales network to the Chinese market. The rest is exported to the Asia Pacific region. Changshu mill sells its paper to wholesale merchants and office machinery manufacturers. The products are sold also directly to the big printing houses and publishers.

The mill is logistically well located by the Yangtze River, about 100 kilometres from Shanghai and its 16 million inhabitants. The nearly 200 hectare mill site has a harbour, a power plant and an effluent treatment plant. Most of the output is shipped in containers to other Chinese ports and for exporting.

The Changshu mill has an ISO 14001 environmental management system as well as OHSAS 18001 occupational health and safety management system in place.


For more information, please contact:
Mr Matti Lievonen, President, UPM Fine and Speciality Papers, tel. +358 40 589 6009 (from 10.00 to 11.00 Finnish time)


UPM
Corporate Communications
September 13, 2005