UPM to improve its international transportations with a longterm agreement with the Dutch shipping company Spliethoff

UPM will extend its cooperation with a Dutch shipping company, Spliethoff's Bevrachtingskantoor B.V. UPM and Spliethoff have undersigned a long term partnership agreement which covers UPM's export traffic from Europe to North America, clay shipments from North America and Brazil to Europe, export from Finland to UPM's discharge ports in Lübeck, and Rostock in Germany, Antwerp in Belgium and Tilbury in the UK. The value of the agreement is approximately EUR 100 million and the total transportation volume is 3.5 million tons annually.

According to the agreement, Spliethoff continues to develop its fleet by investing in eight newbuildings (ConRo) in European trades. In addition, the company has an option to increase its North Atlantic fleet by two additional sideport vessels (S-type) to sixteen vessels in total. The total value of Spliethoff's investment will be approximately EUR 500 million.

The agreement improves cost efficiency of UPM's transport operations in European and North American markets. In addition, concentration of transport flow increases customer service and improves delivery reliability.

Spliethoff is operating around 100 vessels with the size from 3000 to 20 000 DW tons. Spliethoff Group consists of Spliethoff Bevrachtingskantoor B.V. (Amsterdam), Big Lift Shipping (Amsterdam), Wijnne & Barends' shipping company (Delfzijl) and Transfennica (Helsinki).

For further information, please contact:
Mr Jussi Sarvikas, Vice President, Logistics, UPM, tel. +358 204 150241
Mr G.W.Bos, President, Spliethoff Bevrahtingskantoor B.V., tel. + 31 20 4488405

Corporate Communications
November 8, 2005