UPM to modernize paper machine 6 at Schongau Mill in Germany

As part of the company's long-term development plan, UPM will modernize paper machine 6 and speed up paper machines 7 and 9 at the Schongau paper mill in Germany. Furthermore, a new facility for packaging and storing jumbo reels will be built in order to respond to customers’ demand for larger and wider reels. The modernizations will be completed during the second quarter of 2006. The total value of the investment is EUR 41 million.

UPM`s Schongau paper mill produces newsprint and uncoated magazine paper for newspapers, newspaper supplements, advertising journals, brochures, magazines and catalogues. With three modern paper machines and 590 workers the mill`s annual production capacity after the modernization will be 750,000 tonnes of printing paper from up to 100% recovered paper. The Schongau paper mill is one of the world`s largest recyclers of recovered paper.


For further information, please contact:
Artur Stöckler, Vice President & General Manager, UPM Schongau, tel.: +49 8861 213 122


UPM
Corporate Communications
July 14, 2005