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UPM's Kymi Pulp Mill Lays Foundation for New Chemical Recovery Plant in Kuusankoski
Kuusankoski, Finland, 17 January 2007 -– The foundation stone of UPM Kymi pulp mill's chemical recovery plant was set 17 January 2007. The project began last spring and the aim is for the new, single-line recovery plant to go on stream by summer 2008.

The new recovery plant is the biggest ongoing investment project for Kymi and UPM, and for the whole Finnish forest industry. The investment is valued at EUR 325 million and involves the replacement of two outdated chemical recovery lines by one modern line.

The investment will secure the pulp supply of Kymi paper mill and ensure Kymi's development as a competitive integrated fine paper mill. The mill's annual production capacity will exceed 900,000 metric tons once the investment is completed.

This investment will allow Kymi to increase the energy self-sufficiency of the integrated pulp and paper mill, to lower the manufacturing costs, and to reduce carbon dioxide emissions and the impact on the environment. The new plant will enable the mill to increase the use of biofuels and to double bio-electricity production capacity. This investment is an important part of Kymi's renewal program and will allow the company to introduce new operating models.

Jussi Pesonen, UPM´s president and CEO said the project is of high importance to UPM in a new operating environment that requires greater competitiveness and profitability in a new business environment. Energy efficiency has become a significant competitive factor. UPM has consistently improved its energy efficiency through investments in Finland and in the other countries in which it operates.

Fine papers are part of UPM's core business. The Kymi mill investment will strengthen the development of this business area and strengthen its profit-making capacity. UPM is a major player in the European fine paper industry. The reconstruction of Kymi puts the company in an even better position to become the best performer in the industry.

Chemical recovery is one of the main processes of pulp production. The recovery plant is used to recover the chemicals used for cooking chemical pulp and to return them for re-use. At the same time, the energy from the wood dissolved during cooking can be used.

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