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UPM's Stracel Mill

Helsinki, Finland 07 January 2013 -- UPM has finalized the employee information and consultation process with the Central Workers’ Council of UPM France and the Workers’ Council of the Stracel mill. The mill ceased production of coated magazine paper on January 4, 2013.

The consultation process was started in July, 2012. The process is part of UPM’s asset review announced on 31 August 2011, aiming to adjust company’s magazine paper capacity to match the needs of its global customer base.

The current customers of the UPM Stracel will be served from other UPM mills. UPM Stracel mill has been producing 270 000 tonnes of coated magazine paper grades. The mill has 250 employees.

As the next step, UPM will continue the negotiations of the sale of assets and part of the land of the Stracel mill to the joint venture created by VPK Packaging Group and Klingele Papierwerke.

“We have taken the necessary time needed to find the best possible solution for the Stracel mill and its employees. The process was done together with all relevant stakeholders and we want to thank them all for their cooperation” says Jyrki Ovaska, President of UPM Paper Business Group.

“The project of VPK and Klingele to convert the mill into a recycled fibre based containerboard mill is serious and provides an option to create a new industrial future for the Stracel site and for a number of its employees. The aim is to conclude these negotiations as soon as possible,” says Ovaska.

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our 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 23,000 people and it has production plants in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com


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