UPM-Kymmene - Company Announcement

UPM closes down the UPM Docelles fine paper mill in France

UPM-Kymmene Corporation    Stock exchange release    22 January 2014 at 09:30
EET 

UPM will permanently close down the Docelles paper mill in France. Employee
information and consultation negotiations were completed on December 13, 2013
and Social Plan was approved by French authorities on January 13, 2014.  UPM
offers support to employees in order to alleviate the effects caused by staff
reductions in relation to the closing of the mill. The Docelles mill employs
161 people. 

The plan of sale or other exit of the UPM Docelles mill was originally
announced on 17 January 2013. It is part of UPM's plan to adjust its graphic
paper capacity and support operations to match the declining demand in Europe. 
The production will cease by the end of January 2014. With the closure of the
mill UPM will reduce a total of 160 000 tons of its fine paper capacity. 

“UPM has been conducting an active search for a buyer which could offer a
credible future for the mill. Unfortunately this search did not result in a
binding, credible offer for the mill. However, UPM is still open to consider
the sale of Docelles mill machinery and property,” says Petteri Kalela, Senior
Vice President of UPM Paper ENA. 

UPM booked  charges of EUR 25 million as special items in Q4/2013 operating
profit related  to the restructuring  of the mill 

For more information, please contact:
Petteri Kalela, Senior Vice President, UPM Paper ENA (Europe & North America),
tel. +4982131099201 or +491605337118 
Jean-Marc Louvet, Director, French Projects, UPM, tel. +33 6 0742 1115

Earlier releases related to the subject:
17 January 2013, UPM plans to reduce 580,000 tonnes of graphic paper capacity
in Europe 
18 July 2013, UPM receives a conditional offer for Aigrefeuille further
processing mill and continues the Docelles mill sales process 

Notes to the editors
UPM Docelles paper mill manufactures uncoated fine paper with the annual
capacity of 160,000 tonnes. Located in Eastern France the mill employs about
160 people. The mill was founded in 1478. 

UPM Paper ENA (Europe & North America) is the world's leading producer of
graphic papers, serving customers in Magazine Publishing & Advertising,
Merchants, Home & Office, and Newspaper Publishing. A leader in sustainable and
high performance papers, UPM Paper ENA's production is located in Finland,
Germany, the United Kingdom, France, Austria, and the United States. 

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 22,000 people and our annual
sales exceed € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM -
The Biofore Company - www.upm.com 

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

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com
www.twitter.com/UPM_News