UPM applies for FSC certification in Finland
UPM applies for FSC (Forest Stewardship Council) certification for its forests in Finland. At the same time UPM also extends its forest service portfolio to cover FSC-certification services to Finnish forest owners. UPM's forests and most of the privately owned forests in Finland are already certified under PEFC (Programme for the Endorsement of Forest Certification Schemes).
UPM establishes a wind power development company
UPM in cooperation with TuuliSaimaa Oy has established a wind power development company VentusVis Oy. In the starting phase, the operations focus on developing land areas, which are leased from UPM, for wind power production. The development work includes evaluation of the land suitability, permitting process and preparation for possible wind power construction projects and wind power production.
Regulatory process of UPM's Myllykoski transaction proceeds
The Competition Directorate-General of the EU Commission has completed the first phase of the regulatory investigation into UPM's acquisition of Myllykoski and Rhein Papier. The Commission has announced that the investigation will proceed into the second phase.
The targeted time of the closing of the transaction will be postponed to the third quarter of 2011.
UPM strives for the best carbon footprint in the industry
During the past two years, UPM has improved energy efficiency significantly by effective process and equipment modifications and by engaging employees in an energy-saving campaign. Thanks to these measures, UPM's electricity and heat consumption has decreased by 9% per paper tonne. In the past two years, UPM has achieved savings of EUR 55 million and a 7% reduction in carbon dioxide emissions.
UPM to expand its seedling production in Finland and Uruguay
UPM expands its nursery in Joroinen, Finland and builds a second nursery in Uruguay. These expansions secure the availability of high quality seedlings and seed material.
UPM Raflatac to acquire labelstock operation in Brazil
UPM Raflatac will acquire Gumtac, the Brazilian labelstock coating and slitting business of BIC Group. Gumtac is located in Rio de Janeiro and employs approximately 35 people.
"Gumtac's well-managed operation will give us an excellent platform to extend our product offering and further support our customers' growth in the region," says Jouko Lähepelto, Senior Vice President, Americas & Asia Pacific.
UPM reports strong year of recovery
Financial Statements 2010:
January–December 2010:
Earnings per share grew to EUR 1.08 (0.33), excluding special items to EUR 0.99 (0.11)
Operating profit excluding special items was EUR 731 million (270 million)
Solid top-line recovery – sales increased by 16%
Net debt down by EUR 444 million
Board's proposal for dividend per share EUR 0.55 (0.45)
UPM's new formable plywood bends easily to many end uses
UPM Plywood has developed a new way to manufacture layered composites. The first application of the new technology is formable plywood which can be used to make bent wooden structures for example for furniture. The Finnish furniture manufacturer Isku will be the first to take formable plywood into use in mass production.
Agreement on protecting forests in Kainuu
The Ministry of the Environment and UPM have agreed upon compensation for the Natura 2000 sites and areas designated for protection under national conservation programmes in UPM's forests in Kainuu, Finland. The State will purchase approximately 380 hectares from UPM for nature protection purposes. Moreover, UPM has agreed to privately protect approximately 330 hectares of its own land in Kainuu.
Pohjolan Voima aims to sell its Fingrid shares
UPM's associated company, energy company Pohjolan Voima , the State of Finland and the Mutual Pension Insurance Company Ilmarinen are negotiating on the sale of Pohjolan Voima's 25% shareholding of Fingrid, the Finnish electricity transmission system operator. The State would acquire approximately 81% of the shares and Ilmarinen approximately 19% of the shares owned by Pohjolan Voima.
Pesonen wins RISI's European CEO of the Year Award
Jussi Pesonen, President and CEO of UPM, has been selected as the RISI European CEO of the Year for the pulp and paper industry for 2011.
European analysts and portfolio managers choose the European CEO of the Year annually through a survey organized by RISI, the leading information provider for the industry. The criteria for nomination include leadership, vision and strategic accomplishment.
Land increase for UPM's Forestal Oriental
In order to improve wood procurement options and to support self-sufficiency in wood supply to Fray Bentos pulp mill, UPM's plantation company Forestal Oriental has acquired about 25,000 hectares of land in Uruguay from a private land owner.
The purchase includes several different plots of land. About half of the land is either already planted or suitable for eucalyptus plantations. The total price for the land acquisition including the standing wood reserves is about EUR 65 million.
UPM selects Rauma or Strasbourg as the possible location for a biorefinery
UPM has selected Rauma as the possible location for a biorefinery in Finland. Rauma was chosen ahead of Kuusankoski for two key reasons: more efficient energy utilisation, and lower investment
costs e.g. in foundation work. UPM has not yet made an investment decision on building a biorefinery.
UPM has not yet decided whether the biorefinery will be located in Rauma or in Strasbourg, France, where the environmental impact assessment is still ongoing.
The environmental impact assessment for possible liquid biorefinery at Lappeenranta, Finland is now complete. The plant will be built at the Kaukas mill site and the main products of the liquid biorefinery will be transportation biofuels produced with hydrotreatment technology.
UPM agrees on new financing arrangements
UPM has prepaid all of the Uruguay Fray Bentos pulp mill investment project loans of USD 372 million. The security arrangements relating to the project loans will be released. The prepayment reduces financing costs and simplifies the Group's financing structure.
UPM has also agreed on new bilateral committed credit facilities totalling EUR 675 million, which all are currently undrawn.
Directed share issued
New UPM shares will be offered for subscription to certain holders of subordinated loan notes of Rhein Papier GmbH, who are shareholders of Myllykoski Corporation and who have agreed to subscribe for the new shares in connection with the completion of the acquisition of Myllykoski. The subscription price for the new UPM shares will be paid by contribution of such loan notes to UPM as part of the overall transaction.
UPM to acquire Myllykoski
UPM-Kymmene Corporation has entered into an agreement to acquire Myllykoski Corporation and Rhein Papier GmbH ("Myllykoski"). The approximate enterprise value of the businesses acquired is EUR 900 million.
Myllykoski Corporation and Rhein Papier GmbH consist of seven publication paper mills in Germany, Finland and the United States. The total annual paper production capacity is 2.8 million tonnes. In addition, Myllykoski Corporation owns 0.8% of the Finnish energy company Pohjolan Voima Oy, with an estimated value of EUR 70 million. Following the transaction, UPM Group's balance sheet assets will increase by approximately EUR 1.6 billion.
UPM and Monocle Magazine partner for Finland Survey
UPM has partnered with Monocle - a leading business and cultural affairs magazine - to produce the Monocle Finland Survey. Printed on three UPM grades, the Monocle Finland Survey covers all aspects of Finnish culture, economy and design. It is part of series of national surveys produced by Monocle which has previously included Lebanon and Sao Paulo in Brazil.
UPM inaugurates alternative transportation terminal in Strasbourg:4000 trucks off the road and 50 % less CO2 emissions
UPM inaugurates a terminal for the unloading and storage of suspended calcium carbonate for its UPM Stracel mill. The raw material will be transported by inland waterways and
rail achieving a significant reduction in CO2 emissions. The new transportation system replaces 4,000 trucks a year that previously transported calcium carbonate mixes to the mill and enables to reduce logistic CO2 emissions by 50 % per year.
The terminal was delivered through a financial partnership between UPM,local authorities and the Strasbourg harbor (Port Autonome de Strasbourg)who were the project director and are owners of the facility.
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