UPM Plans to Cut 1.3 Million Tonnes of Paper Capacity in Europe

HELSINKI, FINLAND—August 31, 2011—As part of the Myllykoski integration, UPM has completed a comprehensive review of the long-term competitiveness of its publication paper mills. The review has covered asset efficiency, production input availability and costs as well as end-use markets.

As a result of the review, UPM plans to adjust its magazine paper capacity to match the needs of its global customer base. Therefore, UPM will start negotiations with employees on the plan to permanently remove 1.2 million tonnes of magazine paper capacity in Finland, Germany and France, and 110,000 of newsprint capacity in Germany. The plan also includes restructuring of the overlapping paper sales and supply chain networks and global functions.