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UPM and Chempolis
Helsinki, Finland, 09 January 2008 - UPM and Chempolis Oy, a Finnish technology company, have signed a licence agreement on the use of a novel biorefining technology for the production of papermaking fiber and biochemicals. Agro residues and other nonwood feedstocks, such as straw and reed, can be used as raw materials for pulp and biochemicals.

UPM is also investigating a possibility to build an industrial biorefinery using agro residues in China. The biorefinery would be the first industrial facility using this technology in the world. The UPM Asia R&D Center plays a key role in the research for agro residues as the base for pulp production.

Nonwood materials include a number of cultivated and naturally growing plants, such as agricultural residues. They are available in abundance in many countries that have a shortage of papermaking fibers.

The biorefining technologies, patented by Chempolis, do not use sulfur or chlorine chemicals. Low water consumption, low greenhouse gas emissions, and minimization of other environmental impacts of industrial production are the main environmental benefits of the new method.

UPM in brief

UPM is one of the world’s leading forest products groups. The Group's sales in 2006 were EUR 10 billion, and it has about 28,000 employees. UPM's main products include printing papers, self-adhesive label materials, and wood products. The company has production plants in 14 countries. Its main market areas are Europe and North America. UPM's shares are listed on the OMX Nordic Exchange Helsinki. The company's shares are also traded under an ADR program on the OTC market in the United States. www.upm-kymmene.com

Chempolis in brief

Chempolis is a private technology company, whose main products proprietary biorefining processes. Since its establishment in 1995, Chempolis has been strongly focused on the development and delivery of environmentally sustainable and energy-efficient biorefining technologies and production solutions for industrial utilization of nonwood feedstocks. Chempolis has locations in Finland and China. www.chempolis.com

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