UPM to invest in bleached pulp production at Tervasaari mill

(UPM, Helsinki, June 1, 2006) – UPM is to raise production of bleached pulp developed for the paper machines of its Tervasaari mill in Valkeakoski, Finland. A new bleaching line is scheduled to start up at the mill in autumn 2007. The total cost of the investment is EUR 25 million.

The increase in bleached pulp is made possible by the fact that less unbleached pulp will be needed at the mill once paper machine 6 is shut down in the second quarter of 2007. The mill’s current total pulp production capacity will not increase. However, the use of pulp produced at the mill will increase from the present 50 per cent up to 70 per cent.

UPM’s Tervasaari mill has four paper machines, two of which (PM 8 and PM 5) produce release base paper. The combined annual capacity of these two paper machines is 250,000 tonnes. The mill is the world’s leading release base paper producer. Tervasaari’s PM 7 produces envelope and technical papers and PM 6, which will be closed down during the second quarter of 2007, currently produces sack and technical papers. About 90 per cent of the mill’s production is exported. The annual capacity of the pulp mill is 240,000 tonnes. All pulp produced is for the mill’s own use.

For further information, please contact:
Mr Johan Karjaluoto, Senior Vice President, BA Speciality Papers, UPM, Fine and Speciality Papers Division,
tel. +358 204 15 0372, mobile +358 400 660 322
Mr Eero Kuokkanen, Vice President and General Manager, tel. +358 204 16 2300, mobile +358 40 073 43 32
Mr Veikko Petäjistö, Director, Pulp and Energy, tel. +358 204 16 2610, mobile +358 40 543 29 09