UPM ensures wood supply via enhancing cooperation in Russia

Press Release 25.2.2019 17:00 EET

(UPM, Novgorod, Russia, 25 February 2019 at 17:00 EET) - Today, HASSLACHERLES, UPM Chudovo, IKEA Industry Novgorod and the Administration of the Novgorod region have signed a 4-parties letter of intent aiming at securing wood sourcing for UPM, IKEA Industry and HASSLACHERLES sites located in the Novgorod region in Russia.

HASSLACHERLES will lease a forest from the Novogod region and use coniferous species to increase the production volume of glued timber beams and agrees to sell other wood species to UPM and IKEA Industry. The commercial terms of the sale will be subject to separate agreements between the relevant parties.

"We are happy to make a big step in deepening our successful partnership with UPM and IKEA. This allows for all sorts of lumber beeing processed in the region - from high quality birch veneer to low-grade Aspen," comments Franz Meliessnig, CFO of HASSLACHER NORICA TIMBER.

"UPM is actively seeking partnerships to develop its business everywhere we operate. This letter of intent is a great example of a win-win cooperation," says Mika Kekki, Vice President, Production and Operations, UPM Plywood.

"I am sure it will play an important role in securing wood supply for our expanded Chudovo mill," he continues.

For more information, please contact:
Mika Kekki, Vice President, Production and Operations, UPM Plywood, tel. +358 40 545 5803
Anatoli Zhukovets, General Director, UPM Chudovo, tel. +7 921194 60 80

UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284

HASSLACHERLES is a part of the family owned HASSLACHER NORICA TIMBER group with headquarters in Austria. Around 1,600 employees work on producing rough sawn timber at eight sites in Austria, Slovenia, Germany and Russia. HASSLACHERLES, the mill in Malaya Vishera, is currently producing rough sawn and planed timber as well as white pellets from their own forestry, that is FSC certified. https://www.hasslacher.com/company

IKEA Industry http://inter.ikea.com/en/inter-ikea-group/ikea-industry/

UPM Chudovo mill is one of the nine UPM Plywood mills. It employs directly approximately 630 people and the annual capacity is about 155,000 m3 of birch plywood. Annual birch veneer log supply is approximately 400,000 m3. All the wood for the mill is sourced from sustainably managed forests. UPM Chudovo has FSC certificate on controlled wood sourcing.

UPM Chudovo plywood mill produces coated and uncoated birch WISA plywood e.g. for construction, vehicle flooring and LNG carriers. The mill's products are granted international VTT's and DIN Otto Graf's certificates, the Governmental Standard equivalence certificate and the Russian Federation health certificate. The mill also received DNV ISO 9001 and 14000. In addition, the mill is following the OHSAS 18001 standard.

UPM Chudovo mill is the largest taxpayer and one of the biggest industrial employers in Chudovo region. The mill's history dates back to 1990 as the first Soviet-Finnish joint venture. UPM became its' sole owner in 2005. An investment project on production expansion is on-going at the mill and will be completed by September, 2019. - www.wisaplywood.com/ru

UPM Plywood
UPM Plywood offers high quality WISA® plywood and veneer products mainly for the construction and transport industries as well as UPM Grada® thermoformable wood material for the furniture and manufacturing industries. The sales of UPM Plywood in 2018 were EUR 480 million and it has about 2,400 employees, including 1,500 in Finland. UPM has six plywood mills and a veneer mill in Finland as well as plywood mills in Russia and Estonia. - www.wisaplywood.comwww.upmgrada.com

We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. We employ around 19,000 people worldwide and our annual sales are approximately EUR 10.5 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore - Beyond fossils. www.upm.com

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