UPM and Åbo Akademi University expand their cooperation by signing a frame agreement covering several fields of research. UPM and Åbo Akademi University have previously already cooperated in biomedicals research which is one of Åbo Akademi University's spearhead fields and a focus area of UPM's Biochemicals unit. The frame agreement strengthens cooperation in biomedicals and also in paper, pulp and energy research.

upm bioforeUPM leads the integration of bio and forest industries and builds a sustainable and innovation-driven future for example through collaboration with partners. The purpose is to promote business development and speed up innovations also in new areas, such as biomedicals.

"We are actively looking for strategic partners on a global scale. The frame agreement with Åbo Akademi University strengthens UPM's network of strategic partnerships in areas that are essential for our future businesses", states Pekka Hurskainen, Vice President of Technology Strategy Development at UPM.

UPM and Åbo Akademi University have already been doing successful cooperation with GrowDex® cellulose nanofibril hydrogel. It is UPM's first commercial product developed for biomedical purposes. It is especially well suitable for 3D cell culture applications, such as pharmaceutical research and development. GrowDex is highly biocompatible with human cells and tissues.

"We are pleased with the frame agreement with UPM. This agreement continues our long term collaboration with UPM. Over the years, we have been actively collaborating in the fields of material and process research in chemical engineering and biomedicals, and we are now able to reinforce this collaboration", says Niklas Sandler, Vice-Rector, Research Affairs at Åbo Akademi University. 

For further information please contact:

Vice President, Strategy Development, Technology, UPM, Pekka Hurskainen, pekka.hurskainen@upm.com, tel. +358 400 645 969

Vice-Rector, Research Affairs, Åbo Akademi University, Niklas Sandler, niklas.sandler@abo.fi, tel. +358 2 215 4837

Åbo Akademi University

Åbo Akademi University is an international research university with broad responsibility of research based education in Swedish in Finland. The research and education of Åbo Akademi University covers most disciplines from humanities to theology, social sciences, business and economics, education and welfare studies as well as science and engineering. Åbo Akademi University has around 5,500 students and 1,200 employees. www.abo.fi

UPM

UPM leads the forest-based bioindustry into a sustainable, innovation-driven and exciting future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. UPM provides sustainable and safe solutions to the growing global consumption. Products are made of renewable and recyclable materials. The group employs around 19,300 people worldwide and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

Published in European News

UPM and the Government of Uruguay have signed an investment agreement, which outlines the local prerequisites for a potential pulp mill investment. The agreement details the roles, commitments and time-line for both parties as well as the relevant items to be agreed prior to the final investment decision.

upm logoThe agreement defines the requirements for the operating environment of a world-class pulp mill project. The site of the mill would be close to the city of Paso de los Toros, in the department of Durazno in central Uruguay.

A long-term industrial operation requires stable and predictable operational environment. This will be supported by several measures in the areas of regional development, environment, forestry and land planning as well as labour and energy conditions.

Infrastructure development as key enabler 

The Government will develop the rail and road network by tendering the construction and long-term maintenance of the network. The total investment by the Government has been reported to be approximately USD 1 billion. This investment is necessary to enable the establishment of efficient logistic infrastructure in the Uruguayan inland. The Government will also promote concession for a terminal specializing in pulp in the Montevideo port with rail access in order to secure reliable and competitive outlet to export markets.

Once the permitting requirements are fulfilled, the Government will grant the mill a free trade zone status, which is necessary to ensure competitiveness on international markets.

UPM will carry out an engineering study and permitting process for a pulp mill with an annual capacity of about 2 million tonnes of eucalyptus market pulp. The preliminary estimate for a pulp mill investment on site is approximately EUR 2 billion.

In addition, a successful project requires off-site investments in plantation land and forestry, road network and nursery capacity, harvesting and transport equipment, rolling stock for the rail, export facilities and human development.

"Robust infrastructure is elemental for industrial development. The Government of Uruguay is stating their serious intent with this agreement and timeline. The agreement sets the foundation for UPM's planning of a state-of-the-art pulp mill investment," says Jaakko Sarantola, UPM's Senior Vice President, Uruguay Development.

Global demand for sustainable pulp continues its strong growth

"A competitive world-class pulp mill must have a solid wood supply, well-working logistic infrastructure and efficient mill operations. The environmental performance of the mill would be secured with competent and engaged personnel and with best available technology. When in operation, the mill, forestry and related activities would employ 8,000 additional people in its full value chain. The operations would also have a significant positive impact on the central and north-eastern regions."

"The signing of this agreement confirms that we are now entering the second preparation phase of this prospect, which is expected to take some 1.5 to 2 years. Achieving significant progress in the implementation of the infrastructure initiatives is critically important for the final investment decision," says Sarantola.

"The world megatrends support a strong growth of the market pulp demand. UPM's customers value the stable quality of the Uruguayan eucalyptus pulp and hence Uruguay could be a competitive alternative for addressing UPM's pulp market opportunities in the 2020s. The possible new capacity in Uruguay would support UPM's multifibre strategy; to serve customers in growing hygiene, packaging and speciality end-use segments," concludes Sarantola.

In July 2016, UPM commenced discussions with the Government of Uruguay regarding the prerequisites for long-term industrial development in Uruguay. The aim of these discussions during the first preparation phase was to come to a mutual understanding on an investment agreement that defines the local prerequisites for industrial investment as well as initiatives for infrastructure development. The investment agreement was signed 7 November 2017.

The subsequent second preparation phase consists of an engineering study, tendering and permitting process as well as achieving significant progress in the implementation of the agreed infrastructure initiatives. Any relevant items are to be agreed prior to the possible final investment decision. This second phase is expected to last 1.5 to 2 years.

If these two preparation phases are concluded successfully, UPM will initiate the company's regular process of analysing and preparing an investment decision.

UPM in Uruguay

UPM's operations in Uruguay include the Fray Bentos pulp mill, the UPM Forestal Oriental forestry and wood sourcing company with its two nurseries, as well as the UPM Foundation.

UPM Forestal Oriental manages about 250,000 hectares of plantable land including own and Fomento partner producers' land. All of UPM's forest plantations are certified.

The Fray Bentos pulp mill started operations in 2007 and remains one of the world's most modern and efficient pulp mills. Its annual production capacity is 1.3 million tonnes of eucalyptus pulp. Besides pulp, the Fray Bentos mill is a significant biomass-based energy producer, accounting 8% of Uruguay's total energy production. The mill's wood raw material comes from sustainably managed local plantations.

Founded in 2006, the UPM Foundation works in coordination with local stakeholders to promote the development of rural communities through education, training and entrepreneurship, fostering a culture of safety and healthy living.

UPM employs directly and indirectly altogether 7,000 people in Uruguay and its contribution to Uruguay's GDP is 1.4%. www.upm.uy

UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,300 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

Published in South American News
Tuesday, 07 February 2017 06:43

Updated Statement - Fatality at UPM Shotton

Updated Statement - Fatality at UPM Shotton, 6th February 2017

(Shotton, Deeside, 07/02/17, 16.00hrs)  Following the fatality yesterday at UPM Shotton, further details on the incident are now available for release.

upm logoThe deceased was a contract worker within the inbound recovered fibre warehouse. The man was struck at 11.30am. by a large bucket loader driven by another contract worker. The bucket loader is designed to move waste paper from the floor to the recycling lines inside of the warehouse as per standard operations. He was declared dead at the scene.

As per protocol, the Police were informed along with the Health and Safety Executive (HSE). North Wales Police subsequently arrested the driver of the bucket loader, who assisted them with their enquiries. The driver has now been released without further charge.

The HSE has concluded interviewing of witnesses and reviewed materials relating to the incident. North Wales Police has handed the case to HSE for sole investigation. UPM will continue to fully support.

Mr David Ingham, General Manager, UPM Shotton said:

“We are all deeply shocked by this tragic incident. We made the decision to close the whole mill overnight as a mark of respect for the deceased and his family.
Staff affected by the incident will be offered support going forward, including counselling as required.”

He added: “We will continue to work closely with all parties to identify the cause of the incident. As this remains a live investigation by HSE we are unable to provide further comment.”

UPM Shotton is part of UPM Paper ENA which is a member of the UPM-Kymmene Corporation. The paper mill produces 100% recycled newsprint from recovered newspapers and magazine from the UK domestic recycling supply chain. The mill started operations in 1985 and has a single paper production line, a renewable power plant and a £17m materials recovery facility. It employs approximately 200 persons.

UPM Paper ENA Boilerplate

UPM Paper ENA

UPM Paper ENA (Europe and North America) is the world's leading producer of graphic papers, offering an extensive product range for advertising and publishing as well as home and office uses. The high performing papers and service concepts of UPM add value to our customers’ businesses, while actively fulfilling demanding environmental and social responsibility criteria. With headquarters in Germany, UPM Paper ENA employs approximately 9,000 people. To learn more about UPM Paper ENA visit: www.upmpaper.com 

UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA (Europe and North America) and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com 

Published in European News
Friday, 09 December 2016 07:58

Finnish government lifts biofuel targets

Finland's center-right government has said it planned to lift the share of biofuels blended in transport fuel to 30 percent by 2030 to help meet the country's emissions reduction targets.

upm logoThe biofuels will mostly fall into the EU's "double-counting" counting, as they are produced from forest industry waste and residues. On that basis, the new target translates into a "double counting" share of more than 53%.

That compares with the government's previous "double counting" goals of 20% by 2020 and 40% by 2030, and an EU target of 10 percent by 2020.

The government also confirmed its plans to halve the use of imported oil for domestic needs, ban the use of coal in power generation and increase the use of electric cars to 10 percent of the country's vehicles by 2030.

Paper maker UPM-Kymmene has recently started the world's first plant in commercial use to make biofuel from crude tall oil, a residue of pulp production.

China's Sunshine Kaidi New Energy Group and Nordic energy company St1 are also planning investments to make biofuel from sawdust and other wood residues.

Published in European News

UPM Shotton, based on Deeside, North Wales, has achieved a new landmark in UPM safety performance.  The last recorded Lost Time Accident (LTA) suffered by a UPM employee on site was on 5th July 2011, giving the mill five years of LTA-free operation.

Shotton, a producer of 100% recycled newsprint is the first UPM manufacturing unit, globally, to reach this milestone. The parent company UPM-Kymmene launched its ‘Safety First’ campaign in 2011 with the aim of raising awareness of the responsibility for all. UPM Shotton employees make more than 4000 safety observations per year in their drive improve and weekly Safety ‘Talks’ are held for the whole workforce as well as visitors and contractors on site.

2016 08 29 073101

Mr David Ingham with Rhys Jones, Safety Representative, Unite

David Ingham, General Manager at UPM Shotton commented: “Sustaining this high level of safety performance is a world class achievement by UPM Shotton’s employees. We have continuously focused our time and energy to keeping everyone safe at Shotton.”

He added: This success is built on a sound foundation of management commitment to safety and employees’ commitment to keeping each other safe.I am personally proud of your achievement.”

The production facility employs around 200 persons and operates a paper machine, materials recovery facility and a biomass combined heat power plant on its site in North Wales.

UPM Shotton is part of UPM Paper ENA which is a member of the UPM-Kymmene Corporation. The paper mill produces 100% recycled newsprint from recovered newspapers and magazine from the UK domestic recycling supply chain. The mill started operations in 1985 and has a single paper production line, a renewable power plant and a £17m materials recovery facility. It employs approximately 200 persons.

UPM Paper - UPM is the world's leading producer of graphic papers and a supplier of a wide product range that includes magazine, newsprint, fine and speciality papers. UPM believes in the future of print and its effective coexistence with digital media.

UPM’s paper business consists of two distinct business areas located at the centre of their market: UPM Paper ENA (Europe & North America) and UPM Paper Asia. Together these two businesses employ around 11 000 papermakers - www.upmpaper.com

Published in European News
Friday, 05 August 2016 09:27

UPM Shotton’s Solar Success

UPM Shotton, a leading producer of 100% recycled newsprint, took a huge leap in its use of renewable energy earlier this year, following a connection to the UK’s largest solar park on the Deeside Industrial Estate in North Wales. The link-up means that UPM Shotton can run almost every daylight hour on 100% renewable energy. The solar site, which is visible from outer space, is one of the last and largest of its type under the current UK government policy.

2016 08 05 092011

The paper mill, which employs approximately 200 people across its Deeside site, already sources 70% of its energy needs via its renewable sources which includes its own biomass power plant which commenced operation in 2006. The agreement with British Solar Renewables  Welink Energy and Compton Group means that UPM Shotton has halved its purchase of power in April.

Andrew Bronnert, Head of Pulp and Energy for UPM Shotton, comments: “We already have a renowned energy policy with integrated assets such our own power plant and connectivity to EirGrid which operates wind farms in the Irish Sea and leases part of the UPM Shotton site.

“Our parent company UPM is already a world-leader in renewable energy and its strategy is to continually increase its use of energy from renewable sources such as hydro-power in Finland and its latest innovation bio-diesel derived from wood fibres. 

“This latest collaboration with British Solar Renewables,Welink Energy and Compton Group means we now have one of the most sophisticated energy provisions in manufacturing and adds to our strong environmental credentials which are recognised by the Welsh Government and its sustainability teams.”

Andrew Dodge from the joint venture between British Solar Renewables,Welink Energy and Compton Group added: “We’re delighted in the partnership and support we have received from UPM Shotton. With this particular project we’ve been able to further demonstrate our combined strength in business and renewables, working together to create an effective supply of energy for large manufacturing sites.”

The award-winning mill will also start up a second power plant and turbine in December 2016, enabling 100 per cent use of all steam produced on site.

The Solar Park has over 250,000individual photovoltaic panels and during daylight hours can provide the UPM Shotton site with 100% of its output. The paper mill is also connected to the National Grid and is able to sell-back some of its unused energy for example, during maintenance time when the paper machine is not running.

UPM Shotton is part of UPM Paper ENA which is a member of the UPM-Kymmene Corporation. The paper mill produces 100% recycled newsprint from recovered newspapers and magazine from the UK domestic recycling supply chain. The mill started operations in 1985 and has a single paper production line, a renewable power plant and a £17m materials recovery facility. It employs approximately 200 persons.

UPM Paper - UPM is the world's leading producer of graphic papers and a supplier of a wide product range that includes magazine, newsprint, fine and speciality papers. UPM believes in the future of print and its effective coexistence with digital media.

UPM’s paper business consists of two distinct business areas located at the centre of their market: UPM Paper ENA (Europe & North America) and UPM Paper Asia. Together these two businesses employ around 11 000 papermakers - www.upmpaper.com  

British Solar Renewables deliver large scale solar farms and on-site solar generation. We offer tailored services that include design, development, grid connection, operation and maintenance, which enables us to continually innovate, improve efficiency and drive down cost. 

The company has a strong track record in delivering solar projects and since our launch in 2010 we have connected over 340MW of solar pv power plants. All of our sites are constructed to the highest standards using UK sourced parts and labour where ever possible. This helps ensure all of our projects have low environmental impact and supports the UK economy whilst making a significant contribution to future energy demands. British Solar Renewables

Published in European News

UPM opens a photo exhibition on the 2 June at Bioforum, UPM's showroom at the UPM Biofore House, to celebrate company's special relationship with Uruguay. The Natural Commitment photo exhibition provides a cross-sectional overview of company's 25 years in Uruguay. The exhibition shows Andrés Bartet's photographs from the UPM's plantation operations and community engagement activities of the UPM Foundation. In addition, the exhibition offers glimpses into the Uruguayan countryside, its people, and their passionate relationship with the country's most popular sport football. The exhibition is staged in cooperation with the Embassy of Uruguay.

2016 06 02 064122

UPM has played a major role in the development of the Uruguayan forest industry since the early 1990s. In addition to certified eucalyptus plantation operations the company produces pulp and energy in one of the world's most modern pulp mills in Fray Bentos.

The UPM Foundation was established 10 years ago to promote education and entrepreneurship through joint work with social organisations and local representatives in Uruguay. The foundation's mission is to bring together local stakeholders, communities and authorities, especially in the fields of education and training in the rural interior of the country. 

"UPM has been privileged to play a substantial role in the development of a successful and sustainable forest industry in Uruguay. Through our forestry, pulp production and related logistics chain we are deeply engaged with the Uruguayan society and will remain highly committed to supporting the positive development of the industry", says Anssi Klinga, Senior Vice President, UPM Pulp

"The establishment and operation of UPM in Uruguay has been a significant milestone in the development of the forestry industry in our country. It was the first major greenfield undertaking in the pulp sector, vertically integrated, environmentally sustainable, socially responsible and technologically advanced. I believe that UPM has found in Uruguay a country well suited for its business with the right natural conditions, a solid institutional framework, good governance and also a qualified and motivated working force", states Pablo Sader, Ambassador of Uruguay.

"Natural Commitment photo exhibition offers a unique and rare glimpse into a distant and beautiful country that UPM has a special relationship with. The photographs are more than documentation of UPM's 25 years of operations in Uruguay. They show the beauty of rural Uruguay and its people, celebrating the positive developments we have achieved working together in the local communities", says Elisa Nilsson, Vice President, Brand and Communications, UPM.

Visit biofore.upm.fi (in Finnish) to see opening dates and hours for the Uruguay photo exhibition.

For further information please contact:

Elisa Nilsson, Vice President, UPM Brand and Communication, tel. +358 40 500 3150.

UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

UPM Pulp

UPM is one of the world's leading producers of northern softwood, birch and eucalyptus pulp supplying global customers in many end use segments such as tissue, specialty papers, board, and printing and writing papers through its own sales and technical service network close to the customers. UPM Pulp operates four modern pulp mills, three in Finland and one in Uruguay as well as eucalyptus plantations in Uruguay. UPM Pulp employs approximately 1,500 people. The annual pulp production capacity is 3.5 million tonnes. Pulp Business is part of the UPM Biorefining Business Area. To learn more, visit: www.upmpulp.com

UPM in Uruguay

UPM's operations in Uruguay include the Fray Bentos pulp mill, the UPM Forestal Oriental forestry and wood sourcing company with its two nurseries, as well as the UPM Foundation.

UPM Forestal Oriental owns about 230,000 hectares of land, of which about 60% is planted with eucalyptus. The rest of the land is protected or used for forestry-related infrastructure, cattle grazing and other non-plantation operations. All of UPM's forest plantations are certified to FSC® and PEFCTM standards.

The Fray Bentos pulp mill started operations in 2007 and remains one of the world's most modern and efficient pulp mills. Its annual production capacity is 1.3 million tonnes of chemical eucalyptus pulp. Besides pulp, the Fray Bentos mill is a significant biomass-based energy producer, its electricity production accounting 8% of Uruguay's total energy production. The mill's wood raw material comes from sustainably managed local plantations.

Founded in 2006, the UPM Foundation works in coordination with local stakeholders to promote the development of rural communities through education, training and entrepreneurship, fostering a culture of safety and healthy living.

UPM employs directly and indirectly altogether 7,000 in Uruguay jobs and its contribution to Uruguay's GDP is1.4%.

Published in South American News

upm logoUPM-Kymmene Corporation is proceeding with the plan to change its corporate structure in Finland to better match its current business structure. UPM announced the plan on 10 December 2015.

Three new subsidiaries have been established in Finland: UPM Energy Oy, UPM Paper Asia Oy and UPM Paper ENA Oy. The personnel and assets of UPM Energy, UPM Paper Asia and UPM Paper ENA (Europe and North America) in Finland are planned to be transferred to the new companies on 1 July 2016.

UPM Raflatac and UPM Plywood operate already in their own subsidiaries in Finland. UPM Biorefining will remain in UPM-Kymmene Corporation.

The UPM business structure and operating model of businesses will remain as today. The arrangement has minor impact on day-to-day operations. The staff will transfer to the new companies with existing terms and conditions.The corporate structure change does not include personnel reductions.

For further information, please contact:

Tapio Korpeinen, Chief Financial Officer, UPM, Tel. +358 2041 50004

UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

Published in European News

upm logoUPM-Kymmene Corporation has on 12 May 2016 received a notification under Chapter 9, Section 5 of the Securities Markets Act, according to which BlackRock, Inc.'s holding of UPM shares and voting rights has gone below the threshold of 5 per cent on 11 May 2016.

According to the notification, BlackRock, Inc.'s indirect shareholding in UPM has decreased to 26,407,100 shares, corresponding to 4.94 per cent of UPM shares and voting rights. The total number of UPM shares and voting rights owned directly or through financial instruments by BlackRock, Inc. and its funds was 5.54 per cent on 11 May 2016. UPM's registered total number of shares and voting rights amounting to 533,735,699 has been used in the calculation of percentages for the announcement.

Total positions of BlackRock, Inc. and its funds subject to the notification obligation:

  % of shares and voting rights (total of A) % of shares and voting rights through financial instruments (total of B)

Total of both in %

(A + B)

Resulting situation on the date on which threshold was crossed or reached 4.94% 0.59% 5.54%
Position of previous notification (if applicable) 5.09% 0.41% 5.50%

 

Notified details of the resulting situation on the date on which the threshold was crossed or reached:

A: Shares and voting rights

Class/type of shares Number of shares and voting rights Number of shares and voting rights % of shares and voting rights % of shares and voting rights
ISIN code (if possible) Direct (SMA 9:5) Indirect (SMA 9:6 and 9:7) Direct (SMA 9:5) Indirect (SMA 9:6 and 9:7)
FI0009005987   26,407,100   4.94%
SUBTOTAL A   26,407,100   4.94%

 

B: Financial Instruments according to SMA 9:6a

Type of financial instrument Expiration date Exercise/Conversion period Physical or cash settlement Number of shares and voting rights % of shares and voting rights
Securities Lent N/A N/A Physical 2,028,098 0.37%
CFD N/A N/A Cash 1,170,810 0.21%
      SUBTOTAL B 3,198,908 0.59%

 

Full chain of controlled undertakings through which the voting rights and financial instruments are effectively held starting with the ultimate controlling natural person or legal entity is presented in the enclosed Annex.

UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

Chain of controlled undertakings - BlackRock, Inc.

Published in financial News

upm bioforeUPM has signed an agreement to sell its Schwedt newsprint mill site and relevant assets to LEIPA Georg Leinfelder GmbH for the aim of a conversion into liner production. The entire personnel of Schwedt mill will transfer to LEIPA as old employees. The transaction price is EUR 70 million. The transaction is subject to customary third party approvals.

As part of the transaction, the parties have agreed to enter into a contract manufacturing agreement for newsprint for a transition period which would end latest at the end of 2017. The mill's capacity is 280,000 tonnes of newsprint annually.

LEIPA will convert the mill into liner production. The planned production capacity would be approximately 450,000 tonnes of liner annually.

"With this transaction UPM and LEIPA will have an improved opportunity to develop their businesses to meet the market needs. LEIPA is a solid and successful player in the liner business," says Winfried Schaur, Executive Vice President, UPM Paper ENA.

"The negotiations with LEIPA have proceeded well and we believe that the transaction will bring benefits to the employees in the form of future employment at a converted site," says Schaur.

UPM continues newsprint production at its Chapelle, Kaipola, Hürth, Schongau, Shotton and Steyrermühl mills.

About UPM Schwedt

UPM Schwedt manufactures standard newsprint with the annual capacity of 280,000 tonnes. Located in the Eastern part of Germany the mill employs about 240 people.

About UPM Paper ENA

UPM Paper ENA (Europe & North America) is the world's leading producer of graphic papers, serving customers in Magazine Publishing & Advertising, Merchants, Home & Office, and Newspaper Publishing. A leader in sustainable and high performance papers, UPM Paper ENA's production is located in Finland, Germany, the United Kingdom, France, Austria, and the United States. With headquarters in Germany, UPM Paper ENA employs approximately 9,500 people. To learn more about UPM Paper ENA visit: www.upmpaper.com

About UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

About LEIPA

LEIPA Georg Leinfelder GmbH is part of the LEIPA GROUP. Currently the LEIPA group of companies produces approximately 900,000 tons of graphic paper and packaging paper per year at its Schwedt and Schrobenhausen locations, based on sustainable and environmentally friendly production processes.
In 2014, the family-run medium-sized enterprise with 1,450 members of staff generated consolidated sales of approximately EUR 650 million. www.leipa.de

Published in European News
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