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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

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UPM have just announced the official inauguration of the Paper Machine 3 (PM3) in Changshu, China. As an important milestone for the development of UPM in China, the new paper machine will further increase production capacity while implementing the Biofore strategy. With this investment UPM will continue to provide environmentally friendly, safe and broad product portfolios for customers in China and the Asia-Pacific region. 

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"In UPM Changshu we will focus on value added, advanced paper products for growing segments in China and worldwide. On this site, we are also introducing totally new, innovative manufacturing technology - not only for China, but for the paper industry worldwide," said President and CEO Jussi Pesonen in his opening speech.

In 2012, in order to meet the growing demand for paper from China and the Asia-Pacific region, UPM began to implement the PM3 Project with a total cost of EUR 277 million. The PM3 production line and process has been designed to be very flexible with a wide range of different products from uncoated woodfree papers to advanced specialty products. This swing concept of PM3 also greatly improves the efficiency of paper production and also helps to reduce energy consumption. The product portfolio of Changshu has been extended into labelling material and other specialty products to better fit customer needs. These segments are still seeing and are forecasted to see significant growth globally, but especially in this part of the world.

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UPM first invested in China in 1998 and has since invested more than USD 2 billion in the region. The Changshu site is a proof of UPM's consistent and steady commitment in China. Today, the site boasts a fully integrated production and converting capability that incorporates a paper mill, labelstock factory, Asia R&D Centre as well as an APAC Supply Chain Centre. With the new investment, UPM is able to produce 1.4 million tonnes of labelling material and fine papers for customers across the Asia Pacific region, and beyond.

UPM attaches great importance to the sustainable development of the economy, society and environment. UPM's Biofore strategy emphasizes environmental friendliness and sustainable development for the full life cycle of paper production. Currently the share of certified fibres is at 84 per cent. In addition, UPM has developed a biodiversity program for forest management, to increase biodiversity, improve natural ecosystems, carbon cycles, and vitalize the forest. In the paper production process, UPM values the protection and recycling of water resources. At UPM's Changshu Mill, the recycling rate for the white water has reached 97 per cent.

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"The completion of PM3 Project in Changshu is another strong example of our long-term commitment to sustainable development in Chinese market. In the future, through UPM's Biofore strategy, the company will continue to raise industry standards to achieve a more sustainable and safer way of production," said Jussi Pesonen.

For further information please contact:

Bernd Eikens, Executive Vice President, UPM Paper Asia, tel. +86 139 1366 2828

Mary Ma, Director, Marketing, Communications and Environmental Affairs, UPM Paper Asia, tel. + 86 21 644 855 44

UPM Changshu Mill

UPM Changhu mill located in Jiangsu Province, China produces high quality office and printing papers, and labelling materials. The annual production capacity of the three production lines is 1.4 million tons. UPM Changshu employs around 1,400 people.

UPM Paper Asia

UPM Paper Asia produces fine papers to Asian markets and label and packaging materials to global markets. Our products and services are developed to provide our customers' the right solutions. We are a recognized industry leader in sustainability and environmental excellence. Our responsibly produced and high performance papers are manufactured in China and Finland. 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 Paper Asia, UPM Paper 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

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upm logoUPM-Kymmene Inc. and Northern SC Paper Corp., a subsidiary of the New York Times Company, has just announced the dissolution of their partnership, Madison Paper Industries, in the USA. The partnership's paper business will end and paper production is expected to conclude by the end of May at the latest. Hydro power assets located at the mill site will be sold.

With the closure of the mill, UPM will reduce production of a total of 195,000 tons of its supercalendered paper capacity.

The closure will impact approximately 214 employees located at the mill site. Some employees will remain beyond May to maintain buildings, operate the hydro generating facilities and support activities related to the closing. All employment related actions will be handled in accordance with federal and state statutory requirements.

"Despite everyone's best efforts, the difficult decision has been made to cease paper production at Madison. Demand for SC papers declined significantly in 2015 and the decline is expected to continue. The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past," says Ruud van den Berg, Senior Vice President of UPM Paper ENA.

For more information, please contact:

Ruud van den Berg, Senior Vice President, UPM Paper ENA, tel. +49 151 1215 8310

Russ Drechsel, President and CEO, Madison Paper Industries, tel. +1-207-696-1228

About Madison Paper Industries

Madison Paper Industries is a partnership of UPM and Northern SC Paper Corp., a subsidiary of the New York Times Company, producing approximately 195,000 tons of supercalendered paper on one paper machine. The mill employs more than 200 employees and is located in Maine, in the USA. The assets include 2 hydro power plants.

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

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 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

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Winfried Schaur has been appointed Executive Vice President responsible for UPM Paper ENA (Europe and North America) and member of the Group Executive Team as of 8 February 2016.

2016 02 04 084702Winfried Schaur is currently Senior Vice President responsible for Newspaper publishing business unit within UPM Paper ENA. He has been in his current role since 2013 and in UPM since 2001 holding several leadership positions in the paper business.

He will be based in Augsburg and reports to Jussi Pesonen, President and CEO.

"The UPM Paper ENA management team has done excellent work and with Winfried's appointment I'm sure the solid implementation of the current strategy continues," says Pesonen.

"Paper ENA has been developing very well since the new business structure was decided in 2013. Clear targets, fast decision making and motivated teams are in place at all levels. I will build on this strong fundament together with the team," says Schaur.

Winfried Schaur is 50 years old and has a Master's degree in Mechanical Engineering.

UPM

2016 02 04 084722Through 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 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

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upm bioforeUPM has been ranked on the 25th place in the list of 100 most sustainable corporations by Corporate Knights, the Canadian-based media and research company. UPM is the only company in the Paper and Forest Products category.

The Global 100 Index is determined using 12quantitativesustainability indicators,includingtheamountofrevenue that companiesgenerateperunitofenergy consumed, theratioofCEOtoaverageworkerpayandpercentage of taxes paid. Companieswho maketheGlobal100 rankingarethetopoverall performers in terms of sustainabilityintheir respectiveindustrialsectors, selected from 4353 listed companies with a market capitalisation of over 2 billion USD on 1 October 2015.

"This is the first time that UPM has been ranked on this esteemed list, and we really appreciate reaching such a good position ," says Päivi Salpakivi-Salomaa, Vice President of Environment and Responsibility at UPM.

"For UPM, driving top performance is clearly linked to sustainability. Our vision is captured in one word Biofore. It means that UPM integrates the bio and forest industries and builds a new, sustainable and innovation-driven future. Versatile use of recyclable and renewable wood biomass, combined with innovation, efficiency and responsibility are at the core of UPM Biofore," Salpakivi-Salomaa continues.

"Global 100 companies demonstrate ambition and achievement on a broad spectrum of indicators.They are where people want to work, buy from and invest in over the long term," says TobyHeaps,CEOofCorporateKnights.

Forfullrankings, please visit: http://www.corporateknights.com/magazines/2016-global-100-issue/2016-global-100-results-14533333/

For further information please contact:

Päivi Salpakivi-Salomaa, Vice President, Environment and Responsibility, UPM, tel. +358 2041 50396

Toby Heaps, CEO, Corporate Knights, tel. +1416274 1432, This email address is being protected from spambots. You need JavaScript enabled to view it.

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 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 20,000 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

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UPM inaugurated its newly revamped Kymi pulp mill in Kuusankoski following a EUR 160 million investment in production expansion. Finland's Prime Minister Juha Sipilä officiated the proceedings by signing the charter together with UPM President and CEO Jussi Pesonen.

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UPM invested in the Kymi pulp mill to strengthen its position in the growing end-use segments of the global pulp market. The investment marks a production capacity increase of 170,000 tonnes to 700,000 tonnes of bleached northern softwood and birch pulp annually.

Prime Minister Sipilä stated in his speech that the project is the fruit of a vast store of knowledge that has been accumulated at Kymi mill during the past decades. The investment supports the Finnish Government's target of establishing Finland as a pioneer in the bioeconomy, circular economy and clean-tech solutions by 2025.

"The year 2015 demonstrated that the forest industry continues to play an important role in Finland. Our exports were boosted especially by pulp and paper. Kymi's example is a clear signal of the ongoing strong growth of the forest industry and bioeconomy," stated Sipilä.

In his speech, Jussi Pesonen thanked the project team and all of the Kymi personnel, suppliers and partners for an excellent achievement.

"The construction of a competitive forest industry mill complex requires perseverance, and Kymi has maintained its competitiveness through operational efficiency and investments. In the past ten years, UPM has invested approximately EUR 550 million in the Kymi pulp mill and so far in the 21st century over EUR 900 million in total in the Kymi mill region," says Jussi Pesonen.

Looking to the future competitiveness of the Finnish forest industry, Pesonen emphasised the significant impact of the operating environment and the role of the government. The government must keep its promise not to increase costs for the industry through political decisions. The labour market furthermore needs to be able to negotiate local agreements in order to ensure operational efficiency and delivery reliability to customers in varying demand situations. In addition, Pesonen highlighted the importance of an efficient wood supply chain and measures to ensure a stable wood supply from private forest owners.

A top-notch project in many respects

The Kymi expansion project was completed safely and on schedule alongside ongoing pulp and paper production. The ramp-up of pulp production was faster than expected, enabling the mill to reach its targets. The entire Kymi pulp and paper mill integrate benefits from the improved energy efficiency and operational flexibility brought by the investment project.

The Kymi project was started in February 2014 and completed by the end of 2015. The new debarking plant started operation in June and the modernised softwood fibre line was commissioned in August along with new pulp drying machine, which was the largest single investment in the project. Other improvements made last summer include the expansion of the wood yard and the introduction of a new railway and wagon-loading system.

Today the Kymi integrated pulp and paper mill complex is even more energy-efficient and flexible than ever before. Its high energy efficiency and locally sourced wood reduce the carbon footprint of the mill's products, which already now is close to zero. Over 90% of the energy produced at the Kymi mill is bioenergy.

The investment also has a positive effect on local employment rates and businesses. The increasing use of wood in the mill integrate will generate wood harvest and transportation work for forest industry professionals and stumpage earnings for forest owners.

For further information, please contact:

Mr Markku Laaksonen, General Manager, UPM Kymi, tel. +358 400 754 649, This email address is being protected from spambots. You need JavaScript enabled to view it.

Kymi

UPM Kymi is an environmentally efficient mill integrate producing pulp, paper and energy. UPM Kymi employs about 650 people and is located in south-east Finland in Kuusankoski, Kouvola. Kymi produces bleached birch and softwood pulp as well as coated and uncoated fine paper.

 

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

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 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 20,000 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

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2015 12 18 074734Bernd Eikens has been appointed Executive Vice President responsible for the UPM Paper Asia business area as of 1 February 2016. 

He has been with UPM since 1998 holding several senior leadership positions in the paper business. He is currently responsible for UPM Paper in Europe and North America.

He has two master's degrees, one in Paper Technology (Technical University of Darmstadt, Germany) and another in Industrial Engineering (Georgia Institute of Technology, USA).  Additionally, he holds a doctorate in Chemical Engineering from Colorado State University, United States.

He is a board member of EUROGRAPH (European Association of Graphic Paper Producers) and VDP (German Pulp and Paper Association). Also, he is a member of the board of directors of Johann Bunte Bauunternehmung GmbH & Co. KG.

UPM Paper Asia produces fine papers to Asian markets and label and packaging materials to global markets. Its main customers are retailers, printers, publishers, distributors and paper converters. UPM Paper Asia is a leader in sustainable development. UPM Paper Asia's fine papers are manufactured at the UPM Changshu mill in China, and the labelling and packaging materials at the UPM Jämsänkoski and UPM Tervasaari mills in Finland. With headquarters in Shanghai, UPM Paper Asia employs approximately 1,700 people in China, Finland, Japan, Korea, Singapore and Australia. 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 Paper Asia, UPM Paper 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 20,000 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

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upm logoUPM and LEIPA Georg Leinfelder GmbH discuss the potential sale of the UPM Schwedt mill site and relevant assets to LEIPA for the aim of a conversion into liner production. 

LEIPA will commence a study on the potential conversion at the Schwedt site immediately.

The planned production capacity would be approximately 450,000 tons of liner annually. LEIPA intends to continue all employment relations with the current employees of the UPM Schwedt mill.

Number of issues remain open and the discussions and the study are expected to last several months.

For further information please contact:

Winfried Schaur, SVP, Newspaper Publishing, UPM Paper ENA, This email address is being protected from spambots. You need JavaScript enabled to view it., tel. +49 173 9199014

Nenad Nemarnik, LEIPA Group GmbH, Director Marketing and Sales Coordination, This email address is being protected from spambots. You need JavaScript enabled to view it., tel. +49 160 2548278

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 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 20,000 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 Schwedt

UPM Schwedt manufactures standard newsprint with the annual capacity of 280,000 tonnes. Located in the north-eastern part of Germany the mill employs about 250 people.

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

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2015 11 06 084720UPM continues improving the environmental performance of its graphic and newspaper and chemical pulp production. According to the Environmental Paper Company Index (EPCI) of The World Wide Fund for Nature (WWF), published today, UPM's performance improved yet again year on year.

Published biannually, this Index promotes transparency and continuous improvement of the environmental performance of paper and pulp manufacturing companies. In the Index, WWF invites 80 sector leaders and evaluates their environmental policies and targets, as well as their environmental performance with regard to overall production of news, graphic, packaging and tissue papers and pulp. According to WWF, UPM has improved its performance in many ways. The company has, for example, increased the use of recycled paper and FSC certified wood in its fibre sourcing, and reduced waste to landfill in graphic paper production.

"In global business, all players should be evaluated against fair and balanced criteria," says Päivi Rissanen, Director, Environment and Responsibility.

"We participate in the WWF's EPCI every time, which is a good example of our transparency, and we are glad that our way of operating has received positive recognition. The index is a good addition to our already wide range of transparent reporting processes. We disclose mill-specific environmental information in the EMAS statements for our pulp and paper mills in Europe, China and Uruguay. On top of that, we give specific information about our products in our Paper and Pulp Profiles, available on UPM Certificate Finder," Rissanen says.

For further information:

Ms Päivi Rissanen, Director,  Environment and Responsibility, UPM Paper ENA, tel. +358 407 430 306

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 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 20,000 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

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2015 11 04 090405UPM has achieved a top position on the Nordic Disclosure Leadership Index (CDLI) for the high quality of its climate change related information. UPM's score was 99 out of 100.This is already the 7th time in a row that UPM is listed on the CDLI.

Top scores indicate a high level of transparency in the disclosure of company's climate change-related information, such as data regarding carbon emissions and the use of energy. Top scores tell investors and other key stakeholders about company's accountability and preparedness for changing market demands and emissions regulation.

The CDP Nordic Performance Leadership Index (CPLI) classifies the companies according to their activities to reduce emissions. UPM's reduction percentage was not high enough to reach A level, but the result A- indicates the overall decrease in UPM's emissions and a good result as such.

"UPM's Biofore strategy responds clearly to the global challenges regarding climate change," says Päivi Salpakivi-Salomaa, VP, Environment and Responsibility, UPM.

"Our bio-based products enhance the shift from non-renewable to renewable, carbon neutral resources. We drive innovative business solutions in technologies, resource efficiency and production," she continues. "Our most important raw material, wood, comes from forests that are significant carbon sinks. Therefore using wood from sustainably managed forests is one of the cornerstones of our climate strategy," Salpakivi-Salomaa concludes.

Paul Dickinson,executive chairman and co-founder of CDP says:

"As the world looks beyond the Paris climate change negotiations and prepares for a low carbon future, reliable information about how companies are responding to the transition will be ever more valuable. For this reason we congratulate those businesses that have achieved a position on CDP's Climate Disclosure Leadership Index."

The CDP's annual global climate change report, along with the climate scores of all companies publicly taking part in CDP's climate change program this year, is available on CDP's website.

For further information please contact:

Ms Päivi Salpakivi-Salomaa, Vice President, Environment and Responsibility, UPM, tel. +358 400 754 748

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 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 20,000 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

About CDP

CDP, formerly Carbon Disclosure Project, is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information.  CDP works with market forces, including 822 institutional investors with assets of €86 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them.  More than 5,500 companies disclosed environmental information through CDP in 2015. CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions.  Please visit www.cdp.net or follow us @CDP to find out more.

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