UPM to invest EUR 14 million in developing competitiveness of wood product manufacture in Finland

UPM will invest a total of EUR 14 million in the modernisation of the Korkeakoski and Kaukas sawmills and the Jyväskylä plywood mill. The aim of the investments, which will be completed by next autumn, is to increase the production of special products and ensure the competitiveness of the mills.

In the Korkeakoski sawmill in Juupajoki in central Finland, a new line will be built in connection with the present saw line, enabling the manufacture of more customised products and increasing the added value. The grading plant will also be replaced. The value of the investment is some EUR 7 million. The Korkeakoski sawmill has an annual production capacity of 300,000 cubic metres of wood products particularly for the joinery industry.

The Kaukas sawmill, situated in Lappeenranta in eastern Finland, will modernise log and sawn goods sorting. New X-ray log sorting machinery will be installed in the sawmill, and the grading plant will get cameras for sawn timber grading. The cost of the investment is some EUR 3 million and it enables the manufacture of more customised products and qualities. The Kaukas sawmill manufactures 500,000 cubic metres of sawn products annually.

Veneer handling at the Jyväskylä plywood mill will be modernised and new gluing technology will be introduced. The investment, aimed to improve the mill’s productivity, will cost some EUR 4 million. The Jyväskylä plywood mill manufactures annually 100,000 cubic metres of plywood products used in construction.

Earlier in December UPM announced a EUR 4.5 million investment in the modernisation of the Kaukas plywood mill. In addition, the company will invest in smaller projects that will improve production efficiency in the Finnish sawmills and plywood mills and improve their competitiveness.

For further information, please contact:
Mr Tuomo Visanko, Senior Vice President, Operations, UPM Wood Products Division,
tel. +358 (0)400-352 990.

UPM, Wood Products Division
January 20, 2005