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UPM and Canfor Enter into Sales Cooperation

Helsinki, Finland 07 November 2013 -- The Finland-based UPM-Kymmene Corporation (UPM) and the Canada-based Canfor Pulp Products Inc. (Canfor Pulp) have agreed on a strategic sales and marketing cooperation. Beginning 1 January, 2014, UPM’s Pulp Sales network will represent and co-market Canfor Pulp in Europe and China while Canfor Pulp’s sales network will represent and co-market UPM Pulp in North America and Japan. In the initial phase, the cooperation agreement will include six grades of market pulp and approximately one million tonnes of pulp sales from eight mills on three continents.

Both parties consider the agreement to be a significant strategic step. Customers will benefit from a broader product portfolio consisting of Premium Reinforcing Northern Bleached Softwood Kraft (PRP NBSK), Northern Bleached Softwood Kraft (NBSK), Northern Bleached Birch Kraft (NBBK), Bleached Eucalyptus Kraft (BEK), Unbleached Electrical Kraft Pulp (UBE), and Bleached Chemical Thermo Mechanical Pulp (BCTMP).

“We are pleased to enter into this sales and marketing cooperation with Canfor Pulp, a renowned pulp producer in the industry. The cooperation will provide our customers with the most versatile range of Northern Softwood, Birch, Eucalyptus and mechanical pulp available in the global market combined with world-class technical service,” said Tomas Wiklund, Vice President, Sales and Marketing, UPM Pulp Business.

“Canfor Pulp’s grades complement our current softwood and hardwood pulp range very well. The cooperation will also bring us access to new customers in new markets through Canfor’s established sales channels in North America and Japan,” said Wiklund.

“We are very excited to be entering into this direct-to-market sales cooperation with UPM. This agreement will bring two significant and reputable market pulp producers together to offer our customers a broader technical approach and an enhanced product offering for a total fibre solution,” saidSean Curran, Vice President, Sales and Marketing, Canfor Pulp Products Inc.

“Since 2009 when UPM started to operate as a market pulp supplier, we have consistently built our sales and customer service network in Europe and China. Today we sell over two million tonnes of our annual pulp production volume of 3.3 million tonnes to external customers mainly in the growing segments of tissue, packaging board and speciality papers in Europe and China,” said UPM’s Tomas Wiklund.

UPM Pulp

UPM is one of the world’s leading producers and suppliers of Northern Softwood, Birch and Eucalyptus pulp. UPM’s Pulp Business operates four modern pulp mills - three in Finland and one in Uruguay - and eucalyptus plantations in Uruguay. UPM Pulp’s sales and technical customer service cooperate closely with the Group’s global R&D network. UPM Pulp employs approximately 1,500 people and in 2012 sales amounted to EUR 1.62 billion. UPM’s total annual pulp production capacity is 3.3 million tonnes. Pulp Business is part of the UPM Biorefining Business Area. Read more at www.upm.com/pulp


Through the revival of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve customers worldwide. The Group employs around 22,000 people and our annual sales exceed € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com

Canfor Pulp Products Inc. is a leading global supplier of pulp and paper products with operations in the central interior of British Columbia. Canfor Pulp owns and operates three mills in Prince George BC. With a total capacity of 1.1 million tonnes of Premium Reinforcing Northern Bleached Softwood Kraft Pulp, Canfor Pulp is the largest North American and one of the largest global producers of market NBSK Pulp. Canfor Pulp also markets 210,000 tonnes of Bleached Chemical Thermo Mechanical Pulp from the Canfor Taylor BCTMP Mill. Canfor Pulp employs approximately 1,200 people throughout the organization. www.canforpulp.com


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