Kotkamills Group Oyj - Inside information

Kotkamills Group Oyj: KOTKAMILLS TO DISCONTINUE ITS OPERATIONS IN IMATRA BY THE END OF 2018

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

3 July 2017, at 9:00 am (CET + 1)



The Kotkamills group has been producing Saturating Base Kraft (laminating
papers) in Tainionkoski, Imatra on Paper Machine 7 (PM 7) leased from Stora Enso
Oyj since the separation of Kotkamills from Stora Enso in 2010. The operations
are part of the Group's Industrial Products segment.

Stora Enso Oyj has notified Kotkamills Oy that the leasing agreement concerning
Tainionkoski PM7 will be terminated in accordance with its terms to expire at
the end of 2018.

To serve its existing customers and fulfill the needs arising from increasing
demand for laminating papers, Kotkamills is planning to increase the production
capacity of Paper Machine 1 (PM1) on Kotkamills' site in Kotka. In addition,
Kotkamills has started preparations to procure external production capacity for
laminating papers. The external capacity is planned to be available during the
first half of 2018. The planned additional external capacity (excluding PM1
increased capacity) will be higher than the present capacity of Tainionkoski PM
7.

The discontinuation of the Group's operations in Imatra is not expected to have
a material impact on the Group's financial position or results of operations.

Kotkamills Group Oyj
Board of Directors

For additional information, please contact:

CEO Markku Hämäläinen, tel.+358 40 721 0548, markku.hamalainen@kotkamills.com



DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com



Kotkamills Group in brief

Kotkamills is a responsible partner that delivers renewable products and
performance to its customers' processes via product innovations created from
wood, a renewable raw material. The key brands of the company include Absorbex®
and Imprex®, both innovative laminating paper products for the laminate, plywood
and construction industries. Moreover, Kotkamills offers ecological, technically
sound and visually attractive wood products for demanding joinery and
construction. In summer 2016, Kotkamills started up a new board machine
producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including
the capability to add barriers on-machine. All Consumer Boards material
solutions are fully recyclable and repulpable.

Kotkamills has two production sites in Finland, located in Kotka and Imatra. The
majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.

www.kotkamills.com



Disclaimer

The information contained in this release shall not constitute an offer to sell
or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any
jurisdiction.










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