UPM-Kymmene - Company Announcement

Coated magazine paper production ceased at UPM Stracel mill

 UPM Corporation          Stock exchange release         Helsinki, 7 January
2013 at 10:30 EET 

(UPM, Helsinki, 7 January 2013 at 10:30 EET)  - UPM has finalized the employee
information and consultation process with the Central Workers' Council of UPM
France and the Workers' Council of the Stracel mill. The mill ceased production
of coated magazine paper on January 4, 2013. 

The consultation process was started in July, 2012. The process is part of
UPM's asset review announced on 31 August 2011, aiming to adjust company's
magazine paper capacity to match the needs of its global customer base. 

The current customers of the UPM Stracel will be served from other UPM mills.
UPM Stracel mill has been producing 270 000 tonnes of coated magazine paper
grades. The mill has 250 employees. 

As the next step, UPM will continue the negotiations of the sale of assets and
part of the land of the Stracel mill to the joint venture created by VPK
Packaging Group and Klingele Papierwerke. 

“We have taken the necessary time needed to find the best possible solution for
the Stracel mill and its employees. The process was done together with all
relevant stakeholders and we want to thank them all for their cooperation” says
Jyrki Ovaska, President of UPM Paper Business Group. 

“The project of VPK and Klingele to convert the mill into a recycled fibre
based containerboard mill is serious and provides an option to create a new
industrial future for the Stracel site and for a number of its employees. The
aim is to conclude these negotiations as soon as possible,” says Ovaska. 


For further information please contact:
Arto Lampinen, Vice President, Production, Paper business group, UPM, tel: +358
40 834 9350 

Earlier stock exchange releases related to the subject:
July 03, 2012:  UPM enters into exclusive negotiations for the sale of assets
of the Stracel paper mill in Strasbourg, France:
http://www.upm.com/EN/MEDIA/All-news/Pages/UPM-enters-into-exclusive-negotiation
s-for-the-sale-of-assets-of-the-Stracel-pap-001-Tue-03-Jul-2012-09-35.aspx 

August 31, 2011:  UPM plans to reduce 1.3 million tonnes of paper capacity in
Europe:
http://www.upm.com/EN/MEDIA/All-news/Pages/UPM-plans-to-reduce-paper-capacity-in
-Europe-001-Wed-31-Aug-2011-09-45.aspx 


UPM leads the integration of bio and forest industries into a new, sustainable
and innovation-driven future. Our products are made of renewable raw materials
and are recyclable. UPM consists of three Business Groups: Energy and pulp,
Paper, and Engineered materials. The Group employs around 23,000 people and it
has production plants in 17 countries. UPM's annual sales exceed EUR 10
billion. UPM's shares are listed on the Helsinki stock exchange. UPM - The
Biofore Company - www.upm.com 


UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications

UPM Media Desk, tel. +358 40 588 3284
media@upm.com
www.upm.com
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