UPM invests 8 million euros in plywood production in Finland

UPM will invest near 8 million euros in order to improve production efficiency and product quality at their Savonlinna and Jyväskylä plywood mills in Finland.

UPM strengthens the company's position as the leading supplier of maxi-sized plywood panels. The project at the Savonlinna mill, located in eastern Finland, includes a coating unit as well as a sanding and sorting line. The investment which is worth approximately 5,4 million euros will improve production efficiency and almost double the capacity of further processing. Plywood panels produced at Savonlinna are used mainly in transport industry and formwork systems. The new line is scheduled to start up in the first quarter of 2007.

UPM will invest approximately 2,5 million euros in the enlargement of the packaging and further processing department at the Jyväskylä Plywood Mill. The investment in a new building affects the production efficiency but not the capacity. The plywood panels and the veneer produced at the Jyväskylä mill are used among others for formwork systems and parquet industry. The building project will start in May and will be finished by the end of 2006.

For more information, please contact:
Mr Tuomo Visanko, Senior Vice President, Operations, UPM Wood Products Division tel. + 358 (0)400-352 990.

UPM, Wood Products Division
Communications
February 6, 2006