UPM acquires a Russian logging company

Archive 24.11.2005 0:00 EET

UPM has acquired 99% of the shares of the Russian logging company ZAO Tikhvinsky Komplexny Lespromkhoz from 200 private owners. Through this acquisition, UPM aims to improve the availability of quality timber to UPM's own production plants in Russia as well as to the company's mills in Finland.

ZAO Tikhvinsky Komplexny Lespromkhoz has a logging licence for almost 200,000 hectares of forests in Tikhvin municipality, situated in the eastern part of the Leningrad province about 250 kilometres east of St. Petersburg. The company also owns two small sawmills. The company employs 500 to 700 persons, depending on the season.

Mr. Juri Vasilievits Orlov will continue as a Managing Director of the company. UPM aims to develop the know how of the Tikhvinsky staff and to improve the efficiency of the company's operations. One part of this is a development project which will result in forest management and wood sourcing practices fulfilling the criteria of the international forest certification standards.

For further information, please contact:
Mr Jaakko Sarantola, Director, Forestry and Wood Sourcing, UPM, tel. +358 40 707 0221
Mr Juhani Hongisto Director, Forestry and Wood Sourcing, Russia, UPM, tel. +358 40 847 6730 or +7 921 920 8470
Ms Aili Piironen, Corporate Communications, tel. +358 204 150 221

Corporate Communications
November 24, 2005

Notes for editors:

UPM is one of the world’s leading producers of printing papers and the clear market leader in magazine papers. The Group's sales in 2004 were nearly EUR 10 billion, and it has 33,400 employees. UPM's main products include printing papers, converting materials and wood products. The company has production plants in 15 countries and its main market areas are Europe and North America. In Russia, the company has a plywood and veneer mill in Chudovo, a sawmill in Pestovo, representative offices both in Moscow and in St. Petersburg and a wood sourcing organization in St.Petersburg. The company's yearly wood procurement in Russia is about 5 million m³. UPM's shares are listed on the Helsinki and New York stock exchanges. Further information is available on the company's web site at www.upm-kymmene.com.