UPM to cease production of coated magazine papers at its Jämsänkoski mill in Finland

UPM will continue measures to improve its Magazine Paper Division's profitability in accordance with a programme launched in August. The paper machine 4 producing matt finished coated magazine papers (MFC) at Jämsänkoski paper mill will cease production in 2006. PM 4 has started up in 1974 and its annual production capacity is 120,000 tons.

UPM will look for competitive alternative line of production for PM 4 in speciality papers, e.g. label papers which are important for UPM. The other alternative is the permanent closure of the paper production line. The final decisions will be made during the first quarter of 2006.

UPM Jämsänkoski mill manufactures printing papers for magazines and speciality papers for self-adhesives. The mill´s annual paper production capacity with four machine lines is 870,000 tonnes. Located in Central Finland, the Jämsänkoski mill employs approximately 870 people.

Last week UPM announced three-month layoffs at its Miramichi magazine paper mill due to profitability reasons. The annual paper production capacity of Miramichi mill is 450,000 tons of coated magazine papers.


For more information, please contact:
Mr Jyrki Ovaska, President, Magazine Paper Division, UPM, tel. +358 204 15 0564


UPM
Corporate Communications
December 15, 2005