Kotkamills Group Oyj - Company Announcement

Kotkamills Group Oyj: KOTKAMILLS'S NEW CONSUMER BOARD MACHINE NOW IN PRODUCTION

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

22 July 2016, at 4 pm (CET + 1)







The new consumer board machine BM2 of Kotkamills Oy, the subsidiary of
Kotkamills Group Oyj, has started production in Kotka, Finland. A range of
folding boxboards will be produced under the brand name AEGLE and a range of
food service boards under the brand name ISLA.

BM2 has the capability to produce dispersion barrier coatings directly on the
machine, producing barrier boards that can be recycled with normal paper waste
due to having zero plastic content.

"The interest in our new sustainable products has been massive. The new machine
offers a wide range of interesting possibilities for converters, brand owners
and designers alike. Another of the machine's unique features is the ability to
produce board with a silk matte surface, providing brand owners the possibility
to make their product really stand out," says Markku Hämäläinen, CEO of
Kotkamills.

The Consumer Boards business will serve two main market areas. The first is the
market for the production of packaging for food, confectionery, pharmaceuticals
and cosmetics. The second is the market for food service boards for disposable
cups and plates. All products are based on Nordic fresh forest fibres and come
with the unique possibility of the addition of on-machine dispersion coated
barriers to replace the non-renewable plastics traditionally used.

The new machine will provide an increase to the environmental performance of the
site by significantly decreasing the consumption of electricity and water
compared to the former paper production process. The consumption of water per
tonne of CTMP will be almost halved compared to earlier.



Kotkamills' Consumer Board machine BM2 in short

  * Production capacity 400,000 t/a

  * Primary products: high-quality Nordic folding boxboard and recyclable
    barrier board for the packaging industry and food service sector

  * Total investment ca.170 MEUR

  * More than 5 MEUR has been invested in the effluent treatment plant,
    improving the cleanliness of the waste water

  * Main machinery suppliers: Bellmer Vaahto Paper Machinery Oy (from the wet
    end to drying section of the machine) and Valmet (online coating section,
    reeler, winder and CTMP plant)



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 high
quality performance to its customers' processes via product innovations created
from wood, a renewable raw material. Kotkamills' key brands include Absorbex®
and Imprex®, both innovative laminating paper products for the laminate and
plywood industries. Moreover, Kotkamills also offers ecological, technically
sound and visually attractive wood products for demanding joinery and
construction. The start-up of the new board machine producing totally recyclable
Consumer Board products is due in 2016. 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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