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UPM Tervasaari Mill Increases Production
Helsinki, Finland, 29 March 2012 -- UPM Tervasaari mill’s paper machine 8, which produces label release base papers, has been started-up after major renovation. Modifications have been made throughout the paper machine line to increase production speed and further improve paper quality.

PM 8 was built in 1996. It underwent major renovations in 2006. The renewal will increase the capacity of the paper machine by 30,000 metric tons.

UPM Tervasaari mill has three paper machines, two of which produce release base paper (PM 8 and PM 5). In addition, PM 7 produces kraft papers such as envelope, bag and technical papers. The mill is the world’s leading release-base paper producer. The combined annual capacity of these three paper machines is 385,000 metric tons. About 90% of the production is exported. The mill employes about 400 people.

"The investment is UPM's way of meeting the increasing demand for label papers. The company wants to secure its market leader position in label papers and support customer growth," said Pentti Putkinen, general manager of the Tervasaari mill.

“The new technology enables us to produce even thinner high quality papers. The better efficiency of the paper production and material usage also improves the competitiveness of label papers. This strengthens the position of paper-based labelstock in competition with other materials and alternative product decoration techniques in the market,” said Antti Heimola, product manager of UPM Label Paper.

UPM signed a preliminary contract in February 2012 and will sell its packaging paper production to the Swedish company Billerud. The transaction includes two packaging paper machines: PM 7 in Tervasaari, which produces kraft papers (i.e., envelope, bag, and technical papers), and PM 1 in Pietarsaari, which produces kraft paper and sack kraft paper. The aim is to finalize the transaction during the second quarter of 2012.

UPM's products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,000 people and it has production plants in 16 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. Additional information is available at www.upm.com.



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