UPM Invests in Plywood Mills in Russia and Finland

Helsinki, Finland, 26 April 2006) – UPM will invest EUR 6 million in wood products manufacture at its Chudovo plywood mill in Russia and Heinola plywood mill in Finland.

A third rotary cutting line will be installed at the Chudovo plywood mill to increase the mill's annual birch plywood production capacity by 20,000 cubic meters. This investment, totalling some EUR 5 million, will strengthen UPM's capabilities to deliver customised products to the transport vehicle and parquet industries in particular. Installation work will begin in June, and the line will be operational as of December 2006. The Chudovo mill's current production capacity amounts to 80,000 cubic meters of birch plywood annually.

The sorting and machining line will be modernized at the Heinola plywood mill. The line will produce panels especially for the formwork systems and concrete production. This investment, which will cost approximately EUR 1 million, will strengthen UPM's position as a supplier of special products to the formwork industry. Installation work will begin in June, and the line will start production in December 2006. The investment will not affect the Heinola plywood mill's annual production capacity, which is 50,000 cubic meters of birch plywood.

UPM is one of the world's leading forest products companies. The company's businesses focus on papers, converting materials, and wood products. The company offers high-quality WISA wood products solutions for building and industrial applications. UPM Wood Products Division's turnover in 2005 was EUR 1.3 billion, and it employs approximately 6500 people.