Espoo, Finland 11 April 2017 -- Metsä Group's Wood Products Industry Metsä Wood has bought a 10 hectare industrial site in the city of Pärnu, Estonia and commences the construction work of the new birch plywood mill immediately.

The construction of the birch plywood mill in Pärnu is part of the 100 million euro investment program Metsä Wood published in June 2016. The program is carried out during 2017-2018.

The new mill will create approximately 200 jobs to Pärnu. The mill will start production by the second half of 2018.

"Metsä Wood is investing in birch plywood production to better meet the globally growing demand. The location of the new mill in Pärnu offers very good logistical connections to our main markets. The birch veneers will be manufactured in Finland and converted into plywood at the Pärnu mill. This is a major investment in our competitiveness. The annual birch plywood production capacity at the Pärnu mill will be 50 000 cubic metres," says Jari Tikkanen, SVP Production and technology at Metsä Wood.

The construction agreement signed between Metsä Wood and Nordecon AS includes the construction of the production hall of 29 000 square metres and the non-work rooms and office premises.

www.metsagroup.com

Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh fibre paperboards and tissue and cooking papers.

Metsä Group's sales totalled EUR 4.7 billion in 2016, and it employs approximately 9,300 people. The Group operates in some 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 104,000 Finnish forest owners.

www.metsawood.com

Metsä Wood provides competitive and environmentally friendly wood products for construction, industrial customers and distributor partners. We manufacture products from northern wood, a sustainable raw material of premium quality. Our sales in 2016 were EUR 0.5 billion, and we employ about 1,500 people. Metsä Wood is part of Metsä Group.