UPM is satisfied with the Government's political decision concerning nuclear power - Concern on wood availability continues

(UPM, Helsinki, 21 April 2010 at 19:30) – UPM's President and CEO Jussi Pesonen comments on the Finnish Government's energy decisions with reservations.

"The Government's political decision on TVO's Olkiluoto 4 -nuclear power plant unit is positive. On the other hand, the Government's package to support renewable energy production invokes serious concerns for the availability and price of wood biomass," says UPM's President and CEO Jussi Pesonen.

"If the Finnish Parliament also makes a positive decision on TVO's application, the industry could invest billions of euros in competitive Finnish power generation. This would be necessary to develop new forest industry opportunities in Finland. The investment would also support UPM's strategy to grow in low-emission energy production".

The forest industry has a key role in the generation of renewable energy in Finland. Without internationally competitive and developing forest industry it is not possible to reach the climate targets set by the EU.

UPM hopes that the decision on renewable energy genuinely supports the increase of energy wood in the markets and does not redirect current wood streams from industrial processing to energy generation.

"With its renewable energy policy the Government must also take responsibility for the availability of competitive raw material in Finland. It is highly important to follow the true impacts of the tariffs. The Government has to be prepared to take corrective actions if the tariffs do not have the expected impact," says Pesonen.

"Availability of wood in Finland is highly important for us as the largest industrial user of wood in the country. We have the will and ability to develop the industry in Finland if we have an encouraging operating environment," says Pesonen.

During the last ten years UPM has invested over one billion euros in renewable energy production on its mill sites. UPM holds a 43% share in Pohjolan Voima Oy which is the majority shareholder in TVO, Teollisuuden Voima Oyj.

For further information, please contact:
Mr Tapio Korpeinen, President, UPM, Energy and pulp Business Group, tel. +358 40 7300 090