UPM to invest in a Materials Recovery Facility at UPM Shotton Paper Mill in North Wales

(UPM, Helsinki, 4 January 2010 at 16:30 EET) – UPM is to invest GBP 17 million in a materials recovery facility at its UPM Shotton paper mill in North Wales. The investment will further strengthen the mill's integrated operations and create up to 160 jobs at the mill site when operating at full capacity. Construction of the facility will commence immediately and will be completed by January 2011.

The materials recovery facility has been designed to allow UPM Shotton to sort dry recyclables such as plastic bottles, cardboard, newspapers, magazines and metals. The investment is supported by the Welsh Assembly Government with a GBP 1.7m Single Investment Fund grant and will have up to150 people working on the construction phase of the facility.

UPM is the world's largest user of recycled fibre in graphic papers consuming annually 3 million tonnes of recovered paper. The new facility will enable the Shotton mill, which currently recovers approximately 640,000 tonnes of recovered newspapers and magazines per annum, to source high quality paper from co-mingled sources.

Once fully operational, the facility will sort up to 200,000 tonnes of recyclable material of which 120,000 tonnes will be newspapers and magazines - providing 20% of the recovered paper used as raw material in the mill's paper production. Surplus recyclable material will be recycled by other reprocessors as required.

Mr David Ingham, General Manager at UPM Shotton said: "Our vision for UPM Shotton is to be the frontrunner in creating value from renewable and recyclable materials. Building a materials recovery facility at Shotton is a natural step towards this vision. It enables us to provide solutions to our partners in paper recycling and meet UK market needs in processing recyclable materials".

Welcoming this investment, Ieuan Wyn Jones, Deputy First Minister and Minister for the Economy and Transport, said, "I am delighted that we have been able to support this latest investment, which represents an important boost for the economy of North East Wales and will deliver long term benefits for the region."

The investment further supports UPM's development as The Biofore Company, the frontrunner in creating value from renewable and recyclable materials with sustainable solutions.

For more information, please contact:
Mr David Ingham, General Manager, UPM Shotton, tel. +44 (0) 1244284407, david.ingham@upm-kymmene.com
Mr Craig Robinson, Head of Recovered Paper Sourcing, UPM Shotton, tel. +44 (0) 1244 284206, craig.robinson@upm-kymmene.com
Mr Will Stone, Head of Communications UK & Ireland, UPM, tel. +44 (0) 7841 493447, will.stone@upm-kymmene.com

About UPM Shotton
UPM Shotton Paper is part of UPM, the world’s biggest user of recovered paper for graphic papers. The Shotton mill recycles 640,000 tonnes annually. UPM Shotton is the largest newsprint mill in the UK, producing 100 per cent recycled newsprint for the national and the regional press, with capacity to produce 500,000 tonnes a year. Previous investments include a combined heat power plant which started up in 2006.

About UPM
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,000 people and it has production facilities in 15 countries. In 2008, UPM's sales amounted to EUR 9.5 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm-kymmene.com