UPM-Kymmene gives up Finnyards shipbuilding

Archive 20.8.1997 0:00 EEST

UPM-Kymmene Corporation and the other Finnyards shareholders have agreed a letter of intent with the Norwegian Aker Maritime ASA on giving up the Finnyards shipbuilding. The responsibility of Finnyards' business operations will be transferred, according to the letter of intent, to Aker Maritime in October 1997.
The arrangement will be carried out by establishing a new company, of which Aker Maritime owns 60% and the previous Finnyards' shareholders the remaining 40%. Aker will buy the remaining 40% latest after three years.
The south site of Finnyards will be transferred to the new company. In addition, Aker rents the premises and facilities of the north site of Finnyards to carry out business. The new company will employ the shipyard personnel of Finnyards as old employees.
Due to earlier arrangements, the deal has no effect on UPM-Kymmene's financial result.
Further information: Mr. Reko Aalto-Setälä, VP, General Counsel, Corporate Legal Affairs, tel. +358 204 15 0011