| UPM will Establish Jointly Owned Forests in Finland |
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Helsinki, Finland, 10 August 2011 -- UPM will establish four regional jointly owned forests in Finland using about 2000 hectares of company forests as an original asset.UPM’s jointly owned forests will be located in western, eastern, and central Finland, and in Ostrobothnia, next to UPM mills using significant volumes of wood.By establishing the jointly owned forests, UPM aims to promote active forest ownership to improve stable wood supply to the market, and to improve the profitability of forestry. Additionally, the aim is to prevent splitting up of the forest properties.The forest owner can incorporate his or her own forest estate into to the jointly owned forest. In exchange he or she will receive shares of the jointly owned forest equivalent to the value of his or her estate. In jointly owned forest efficient wood production, sustainable forest management and recreational use of the forests are combined. The income from wood sales will be divided up regularly among the owners.Marketing of UPM’s jointly owned forests will start in autumn 2011. This is the point when negotiations to incorporate new forest areas into the jointly owned forests will start.”Joining the jointly owned forest is a noteworthy option for many forest owners, for example when there is a wish to incorporate a small forest estate into a bigger entity. Jointly owned forest is also a good option for the heir to manage the inherited property or in change of generation situations to prevent splitting up of the estate,” said Heikki Kalvila, manager, legal Services, UPM’s Northern Forestry Business. “The persons incorporating their estate into the jointly owned forest obtain regular income and are able to utilize a bigger area for recreation.” The administration and management of UPM’s jointly owned forests is taken care by a forest professional. The aim is to secure as efficient wood production as possible and multiple use of the forest for the benefit of the shareowners. UPM is a leader in the integration of bio- and forest industries into a new, sustainable and innovation-driven future. Its products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,500 people and it has production plants in 16 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. For additional information, visit www.upm.com. |
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