UPM invests in release base paper at its Tervasaari mill in Finland

UPM invests approximately EUR 60 million in developing the production of release base paper at its Tervasaari mill in Finland. The demand for release base papers is estimated to grow annually by 4-8 percent. With the investment, UPM wants to respond to the market growth, but also to improve production efficiency and product quality.

The investment will increase the capacity of the machine by 45,000 tonnes to a total of 175,000 tonnes. The rebuild will be completed in the summer of 2005.

Tervasaari supplies release base paper worldwide with Europe being, however, the main market. The main applications are product labelling, bar code labels and, in the future, RFID transponders which are based on radio frequency technology. The customer base consists of large and medium-sized converters of self-adhesive laminates and commercial siliconizers.

The Tervasaari mill is the leading producer of release base paper in the world. PM 8 started production in 1996 and is already the largest and most efficient paper machine in its business area. The rebuild consists of a new press section, finishing section and some related changes in the drying section and pulp mill.

For further information please contact:
Mr Eero Kuokkanen, Vice President, Business Area Label Papers, tel. + 358 204 16 2300

UPM
Corporate Communications
April 27, 2004