UPM to build a renewable energy power plant at its Caledonian mill in Scotland

(UPM, Helsinki, December 5, 2006) – UPM will build a new power plant at its Caledonian mill in Irvine, Scotland. The new boiler will utilise a 350,000 tonne combination of biomass and site derived residues as its primary fuel. The total investment cost is 59 M£ (approx. EUR 88 million).

The new power plant, once started-up in the first quarter of 2009, will continue to reduce UPM's carbon emissions by 75,000 tonnes annually. The company has reduced its production related fossil CO2 emissions by 25 % during the last ten years by investing in biofuel based energy generation and in energy efficiency. The latest investments have been in a new boiler plant at Shotton mill in the UK and power plants at Rauma mill in Finland and Chapelle Darblay mill in France.

The new power plant at Caledonian mill will also significantly assist the Scottish Executive in achieving its 2010 national renewables generation target of 18%.

The investment further reinforces UPM's Caledonian mill site as being one of the largest ever inward investments in Scotland. The mill's annual production capacity is 280,000 tonnes of LWC magazine paper. Altogether 360 persons work at the site.

For further information please contact:
Ms Anja Silvennoinen, Vice President, UPM, Energy, tel. +358 204 15 0733
Mr Gordon Mitchell, Vice President and General Manager, UPM, Caledonian,
tel. +44 (0)1294 314 422

Notes for editors:
UPM is one of the world’s leading forest products groups. The Group's sales in 2005 were EUR 9.3 billion, and it has about 30,000 employees. UPM's main products include printing papers, converting materials and wood products. The company has production plants in 15 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges. Further information is available on the company's web site at www.upm-kymmene.com