Helsinki, Finland 06 May 2013 -- UPM has completed the sale of assets and part of the land of the UPM Stracel paper mill site to Blue Paper SAS, the joint venture company of VPK Packaging Group NV and Klingele Papierwerke.

 “We are very pleased that we have been able to find a good solution to the Stracel mill. Blue Paper offers a new industrial future for the site and a new opportunity for a number of Stracel employees. We want to express our thanks to all the parties involved in this process," says Jyrki Ovaska, President of the UPM Paper Business Group.

Blue Paper SAS will convert the mill to produce recycled fibre-based fluting and test-liner. The production is expected to start after completing investments in autumn 2013. Blue Paper SAS is creating 130 new jobs at the mill that have been offered to former Stracel employees.

The sale of Stracel was part of UPM’s plan to adjust its magazine paper and newsprint paper capacity to match the needs of its global customer base originally announced in August 2011. UPM stopped the production of coated magazine paper on the mill on 4^th January 2013.

VPK Packaging Group NV is an integrated European packaging group with 33 companies spread across 12 European countries, realizing sales of 700 million €  and having a total of 3’000 employees.

Klingele, a German family owned company since 1920, is one of the leading independent producers of containerboard and packaging made of corrugated board. The company consists of one paper mill, six integrated corrugated plants and seven converting plants in Europe and Africa, realizing sales of 340 mio € and having a total of 1’250 employees.

Klingele and VPK, have a combined corrugated packaging production of more than 1 million tons/year and a paper production of 600’000 tons/year.

UPM Stracel

UPM Stracel paper mill manufactured coated magazine papers. The production was ceased in January 2013. Located in Eastern France the mill employed 250 people. The mill was founded in 1936.

UPM Paper

UPM has 21 modern and sustainable paper mills in Finland, Germany, the United Kingdom, France, Austria, China, and the United States. As the world’s leading producer of graphic papers, UPM Paper provides customers with renewable high-performance products, and delivers more through efficient practises and continuous innovation. UPM Paper’s annual net sales amounted to EUR 7.2 billion in 2012 and the business group employs approximately 12,600 people. To learn more about UPM Paper, visit: www.upmpaper.com.

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. UPM employs approximately 22,000 people. UPM is present in 67 countries and have production units in 17 countries. UPM's annual sales exceed € 10 billion. UPM's shares are listed on the Helsinki Stock Exchange. UPM – The Biofore Company – www.upm.com