Metsäliitto Osuuskunta - Company Announcement

Metsä Group plans to build a next-generation bio-product mill in Finland

Metsä Group Stock Exchange Release 23 April 2014, at 9.50 am EET

Metsä Fibre, part of Metsä Group, is planning to build a bio-product mill in
the existing mill area in Äänekoski, Finland. When materialized, the
approximately EUR 1.1 billion investment would be the largest ever investment
in the forest industry in Finland. The new mill with an annual pulp production
capacity of 1.3 million tonnes is planned to be operational in 2017. 

The new mill will be the world's first next-generation bio-product mill that
can convert wood raw material into a diverse range of products. In addition to
high-quality pulp, the mill will produce bio-energy and various bio-materials
in a resource-efficient way. A unique bio-economy ecosystem of companies will
be built around pulp production. 

The annual impact of the investment on the Finnish economy will be over EUR 0.5
billion and it will provide 2,500 jobs in the forest industry value chain. The
annual increase in the value of exports is estimated to be EUR 0.5 billion. 

”Our new mill will be the most efficient and modern bio-product mill in the
world. The global increase in the demand for high-quality softwood pulp is the
most important driver for the investment, and our aim is to strengthen our
leading position in this market. The investment will support Metsä Fibre's
growth and improve profitability in the long term," says Kari Jordan, President
and CEO of Metsä Group. "In addition to the Environmental Impact Assessment
(EIA) and environmental permit processes, the development of the world economy
and especially the economic development in Asia, market outlook and decisions
related to for example wood supply, permits and logistics, will affect the
final decision."

The bio-product mill will contribute to achieving renewable energy targets in
Finland through increasing the share of renewable energy by approximately two
percentage points. Furthermore, the mill will not use any fossil-based fuels;
all of the energy required for it will be generated from wood. The wood raw
material and side streams will be utilised 100 per cent as products and
bio-energy. 

The mill will increase the consumption of fibre wood in Finland by
approximately 4 million cubic metres (some 10 per cent) per year. The annual
harvesting of softwood can be increased sustainably by approximately 7 million
cubic metres, and birch fibre by 4 million cubic metres. The fibre wood will be
procured mainly in Finland. 

Metsä Fibre will launch the EIA and environmental permit processes immediately
with the aim to have them completed during the first quarter of 2015. The final
investment decision is planned to be made in early 2015, in which case the new
mill would become operational during 2017. 

Metsä Fibre is part of Metsä Group and owned by the parent company Metsäliitto
Cooperative (50.2 per cent), Metsä Board Corporation (24.9 per cent) and Itochu
Corporation (24.9 per cent). 

Invitation to a press conference at 11.30 (EET)

Metsä Group will arrange a press conference today, 23 April, at 11.30 am EET in
Hotel KÄMP, Paavo Nurmi cabinet, address Pohjoisesplanadi 29, 00100 Helsinki,
Finland. Kari Jordan, President and CEO of Metsä Group, Ilkka Hämälä, CEO of
Metsä Fibre, and Juha Mäntylä, Executive Vice President, Metsä Forest will be
presenting in the event. 

Please register for the event by contacting Terhi Kylänlahti at Group
communications, tel. +358 10 465 4202 or +358 50 598 8744,
terhi.kylanlahti@metsagroup.com 



METSÄ GROUP
Group Communications



For further information and interview requests, please contact:

Reeta Kaukiainen, SVP, Group communications, Metsä Group, tel. +358 50 522
0924, reeta.kaukiainen@metsagroup.com or Kaisu Vaalto, Communications Manager,
Metsä Fibre, tel. +358 40 777 8922, kaisu.vaalto@metsagroup.com