UPM to modernize paper machines and increase the use of biofuels at Kaipola mill

UPM will invest approximately EUR 40 million on the modernization of paper machine lines, power plant and saw mill chips handling at the Kaipola paper mill in Finland. Modernizations will strengthen the mill's position to meet customers´ demands regarding product quality and printing process efficiency. In addition, the investment will improve the mill's production efficiency. The modernization will be completed by the end of 2006.

In order to meet customers' demands, a new finishing machinery for super jumbo reels will be built for PM 6 producing magazine paper. The wire section of PM 4 producing catalogue paper will be modernized in order to further develop the product quality. The current rewinder of PM 7 producing directory paper and newsprint will be replaced by a refurbished one from PM 6.

In addition, solid fuel capacity of the mill's power plant´s main boiler will be increased and a new biofuel crushing line will be built. Furthermore, the saw mill chips handling of the mill will be modified in order to increase the use of sawmill chips.

The boiler investment will enable an increase in the share of biofuels up to over 70% of the total volume of fuel used by the mill. The new crushing line will enable the use of stumps in energy production. The investment will reduce the mill´s fossil carbon dioxide emissions by one third.

UPM Kaipola mill manufactures printing papers for directories, magazines and newspapers. The mill´s paper production capacity is 700,000 tonnes a year. Located in Jämsä, Finland, the Kaipola mill employs approximately 780 people.

For more information, please contact:
Mr Leo Lindroos, Vice President and General Manager, UPM Kaipola, tel. +358 40 515 6048
Mr Hannu Miettinen, Technical Director, UPM Kaipola, tel. +358 40 721 6426

UPM, Kaipola
Communications
August 18, 2005.