UPM Increases Label Paper Capacity Helsinki, Finland, 25 November 2010 -- UPM will respond to the growing demand for label papers by increasing the label paper production capacity at its Tervasaari mill in Valkeakoski, Finland. The rebuild of Tervasaari paper machine 8 will increase capacity by almost 30,000 metric tons annually. PM 8 was built in 1996 to produce label base papers. Its last major rebuilt was in 2006. The new installation work will start in March 2011 and the main part of it will be done in early 2012. The new capacity will come on stream during the second quarter of 2012. "With the rebuild of the Tervasaari PM 8 we want to ensure our market leader position in label papers and support our customers' growth," said Juha Kääriäinen, general manager of UPM Tervasaari. UPM Tervasaari paper mill in Valkeakoski annually manufactures some 360,000 metric tons of label, envelope, and kraft papers. The mill employs about 400 people.