UPM to Invest in Bleached Pulp Production at Tervasaari Mill

Helsinki, Finland, 01 June 2006 – UPM is to raise production of bleached pulp developed for the paper machines of its Tervasaari mill in Valkeakoski, Finland. A new bleaching line is scheduled to start up at the mill in autumn 2007. The total cost of the investment is EUR 25 million.

The increase in bleached pulp is made possible by the fact that less unbleached pulp will be needed at the mill once PM 6 is shut down in the second quarter of 2007. The mill's current total pulp production capacity will not increase. However, the use of pulp produced at the mill will increase from the present 50% up to 70%.

UPM's Tervasaari mill has four paper machines, two of which (PM 8 and PM 5) produce release base paper. The combined annual capacity of these two paper machines is 250,000 metric tons. The mill is the world's leading release base paper producer. Tervasaari's PM 7 produces envelope and technical papers and PM 6, which will be closed down during the second quarter of 2007, currently produces sack and technical papers. About 90% of the mill's production is exported. The annual capacity of the pulp mill is 240,000 metric tons. All pulp produced is for the mill's own use.