Helsinki, Finland, 20 March 2012 -- UPM will begin a large construction project at its Pietarsaari pulp mill to rebuild the mill’s effluent treatment plant, at a cost of approximately EUR 30 million. The investment will cover the rebuild of all of the main phases of waste water treatment. The work will start immediately and is to be completed at the end of 2013.

The rebuild of the effluent treatment plant will improve the pulp mill’s production efficiency and reduce its environmental impact. The rebuild also will enable future development of the mill.

The construction includes a new preliminary clarifier for fibers and an aeration basin, created mainly by excavating rock. The pumping station and compressor house will be completely new constructions.

UPM is currently reviewing water management and efficiency in material use at several mills. By 2020, the company intends to have reduced waste water volume by 15% in pulp and paper production compared with levels in 2008. Sustainable use of water is one of UPM's core environmental principles.

UPM treats all waste water in primary and secondary effluent treatment plants before it is released into watercourses. The biological treatment stage is an efficient way to remove dissolved organic contaminants and nutrients from waste water. The emission level of waste water is regularly measured and monitored according to valid monitoring plans.

UPM Pietarsaari pulp mill is the largest pulp mill in Europe with an annual production capacity of about 800,000 metric tons of softwood and hardwood pulp. The pulp mill employs about 300 people. Pulp is sold mainly to global markets, where it is used in the production of everyday products that include tissue, packaging, label, office, and writing papers. The Pietarsaari mill site also includes a packaging paper mill. In February, UPM signed an agreement on the sale of its packaging paper production to the Swedish company Billerud. The target is to close the transaction during the second quarter of 2012.

UPM’s Pulp Business Area employs 1400 professionals globally to manufacture high quality softwood and hardwood pulp. All wood is sourced from sustainably managed forests and our own eucalyptus plantations in Uruguay. UPM's four modern and efficient pulp mills are located in Finland and Uruguay. Pulp sales in 2011 were EUR 1.6 billion.

UPM 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 about 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.