UPM continues developing Pulp Business by investing in efficiency and competitiveness of the Kaukas pulp mill

Investor news 20.6.2017 10:30 EEST

(UPM, Helsinki, 20 June 2017 at 09:30 EET) - UPM will further improve the efficiency and competitiveness of the Kaukas pulp mill in Lappeenranta, Finland, by upgrading the mill's production process with a EUR 30 million investment. The upgrade will be targeted in the mill's fibre lines, recovery boiler, evaporation, bailing and wood handling. Erection of the main equipment and start-up are scheduled for the spring of 2018.

"Last year at the Kaukas mill we successfully completed a EUR 50 million investment, where we renewed both the pulp drying machines. Now that we have met targets with drying, we can improve the production efficiency with these targeted upgrades," says Sami Saarela, Vice President, Finland Operations, UPM Pulp.

After this new project, annual production capacity of the Kaukas mill will increase by 30,000 tonnes from the current 740,000 to 770,000 tonnes of softwood and birch pulp in 2019. The majority of its production is softwood. The Kaukas softwood pulp, UPM Conifer Reinforcement, is known in the market as a strong reinforcement pulp suitable for end-uses requiring good strength properties.

"Demand for pulp continues to grow especially in paper grades that are used in consumer goods. Examples of such grades are tissue, label papers and board. In previous years we have replied to growing demand with similar targeted investments in all of our pulp mills and thus cost-efficiently increased our annual pulp production capacity altogether by more than 500,000 tonnes since 2013," says Saarela.

UPM's biggest ongoing pulp investment today is the EUR 98 million production expansion at the Kymi pulp mill in Kuusankoski, Finland. Started in 2016, this project comprises upgrades in wood handling, the birch fibre line, recovery island and effluent treatment. New machinery will be connected to the process during the next pulp mill shut-down planned for the autumn of 2017. After completion, annual pulp production of Kymi will reach 870,000 tonnes of softwood and birch pulp by the end of the year.

During the past few years UPM Pulp has established a strong position on the pulp market and developed a versatile and attractive pulp portfolio with an appealing service offering. UPM's competitive and modern mills are in excellent shape and provide a perfect platform for further growth in cooperation with customers.

For more information, please contact:
Sami Saarela, Vice President, Finland Operations, UPM Pulp, tel. +358 50 360 6502
Teuvo Solismaa, General Manager, UPM Kaukas, tel. +358 40 7411 380

Invitation to a press conference today in Lappeenranta:
UPM welcomes the press to see the most recently completed upgrades at the pulp mill together with the world record breaking drying machine and to hear all about the latest plans.

UPM will hold a press conference today at the Kaukas pulp mill in Lappeenranta, Finland.
Address Kaukaantie 16, Lappeenranta, at 11:00 EET. Meeting point Meesaportti, see map here >>>. The event will be hosted by Sami Saarela and Teuvo Solismaa, General Manager of UPM Kaukas.
Contact: Katja Tiikasalo, Manager, Stakeholder Relations, UPM Kaukas, tel. +358 50 490 5421.

Photos from UPM Kaukas: http://pet.upm.com/l/WJgRrHZNxmSZ

UPM, Media Relations
Mon-Fri from 9:00 to 16:00 EET
tel. +358 40 588 3284

UPM Kaukas
UPM Kaukas is an integrated modern mill producing sawn timber, softwood and hardwood pulp, coated magazine paper, renewable diesel and energy. With the R&D centre on site, UPM employs around 1,000 employees in Lappeenranta, Finland. The Kaukas pulp mill employs 260 people and produces bleached softwood and birch pulp with an annual capacity of 740,000 tonnes.

UPM Pulp
UPM is one of the world's leading producers of northern softwood, birch and eucalyptus pulp. We supply global customers in end use segments such as tissue, specialty, and packaging as well as printing and writing papers, and board, through our own sales and technical service network close to 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 3.6 million tonnes. Pulp Business is part of the UPM Biorefining Business Area. www.upmpulp.com

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

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