UPM-Kymmene - Company Announcement

UPM Lappeenranta Biorefinery is in commercial production

UPM-Kymmene Corporation              Stock exchange release              12
January 2015 at 11:30 EET 

UPM Lappeenranta Biorefinery is in commercial production

The world's first wood-based renewable diesel biorefinery has started
commercial production in Lappeenranta, Finland. UPM Lappeenranta Biorefinery is
based on a hydrotreatment process developed by UPM, and produces approximately
120 million litres of renewable UPM BioVerno diesel yearly. 

“Lappeenranta Biorefinery is the first significant investment in a new and
innovative production facility in Finland during the ongoing transformation of
the forest industry. It is also a focal part in the implementation of our
company's Biofore transformation strategy,” says Heikki Vappula, Executive Vice
President, UPM Biorefining. 

“The production process works as planned and the high quality end product, UPM
BioVerno diesel, fulfils customer specifications. The start-up phase of the
biorefinery began in early autumn, and it has included customary new process
and production related challenges. The biorefinery is first of its kind in the
world. We are now happy to move forward from start-up phase and be able to
concentrate on regular production process”, says Petri Kukkonen, Head of UPM
Biofuels business. 

Innovative biofuel

The UPM BioVerno diesel is produced out of crude tall oil, a residue of pulp
production, in the UPM Lappeenranta Biorefinery. A big portion of the raw
material come from UPM's own pulp mills in Finland. 

UPM BioVerno renewable diesel reduces greenhouse gas emissions by as much as 80
per cent compared to traditional diesel. Based on research, high quality UPM
BioVerno works with all diesel motors just as well as any regular diesel. UPM
has a sales agreement with NEOT (North European Oil Trade), a wholesale
organisation of oil and biofuel products. 

“It is great to see how the results of technology and product development work
that took many years will materialise as a commercial operation. Sustainable
wood-based raw materials are turned into a unique fuel that truly decreases
emissions and is suitable for all diesel cars, buses and trucks,” says
Kukkonen. 

Significant investment in bioeconomy

UPM has built a € 175 million biorefinery without any public investment grants.
Construction of the UPM Lappeenranta Biorefinery started in summer 2012 and the
foundation stone was laid in November of the same year. The construction
employed nearly 200 people for approximately two years. The biorefinery will
directly employ nearly 50 people and indirectly about 150 people. 

“I want to thank the biofuels team and our partners for their co-operation both
in the construction and start-up phase. The know-how of many UPMers is combined
in the Lappeenranta Biorefinery, and it is a clear sign of our company's will
to take strong steps in furthering the bioeconomy,” says Vappula. 

For further information, please contact:
Heikki Vappula, Executive Vice President, UPM Biorefining, tel. +358 400 912 908
Petri Kukkonen, Vice President, UPM Biofuels, tel. +358 40 592 7440

Photos:
http://www.upm.com/EN/MEDIA/Media-Centre/Image-gallery/Production/Biorefinery/Pa
ges/default.aspx 


UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

UPM Media Desk
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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 21,000 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 Biofuels
UPM plans to become a major player in high quality, advanced biofuels for
transport. Biofuels are an essential part of the Biofore strategy. The
innovative wood-based biofuels developed by the company and their production
technologies are part of a sustainable future. UPM's biofuels are frontrunners
in quality, usability and sustainability. They will significantly decrease
greenhouse gas emissions compared to fossil fuels. www.upmbiofuels.com