01/02/2012 09:15:00

UPM continues to invest in efficient energy generation

A new combined heat and power plant to be built at UPM Schongau mill in Germany

(UPM, Helsinki, 1 February 2012 at 11.15 EET) – UPM continues to invest in

efficient energy generation and builds a new combined heat and power plant at

the UPM Schongau mill in Germany. The target is to significantly reduce energy

costs as well as to secure the energy supply. The total investment is EUR 85

million.

The new power plant will generate process heat as well as electricity for the

mill. It will also provide sustainable and energy efficient district heating

for roughly 750 households and public institutions such as local school and

hospital in Schongau. The renewed energy supply at the mill will be based on

the highly efficient combined heat and power technology utilising gas as a

fuel.

“The new gas power plant will improve the security and self-sufficiency of

energy supply to our mill,” explains Winfried Schaur, General Manager, UPM

Schongau. “The renewal of the energy generation ensures efficient production

and will safeguard the competiveness of the mill. Furthermore, it guarantees a

sustainable paper production loop based on innovative and low-emission

technologies.”

The start-up is planned by the end of 2014. The gas power plant will replace

the old plant facility which has operated more than 40 years.

UPM aims to achieve improved energy efficiency and energy savings in all its

businesses. The company favours a wide range of low-emission energy sources.

During the past decade UPM has invested over EUR 1 billion on carbon neutral

power and heat generation at its mill sites.

For further information please contact:

Dr. Hartmut Wurster, Executive Vice President, Technology, UPM, tel.: +49 821

3109 264

Winfried Schaur, General Manager, UPM Schongau, tel.: +49 8861 213 122

Notes to the editors

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. The Group employs around 24,000 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. UPM – The

Biofore Company – www.upm.com

UPM has 23 modern and sustainable paper mills in Finland, Germany, the United

Kingdom, France, Austria, China and the United States. Many of them are large

recycling centres and bioenergy producers, as well as paper manufacturers. In

2011, the business group’s net sales amounted to EUR 7.2 billion. To learn

more, visit: www.upmpaper.com

UPM Schongau

UPM Schongau mill manufactures newsprint and uncoated magazine papers. Its

three production lines have a combined annual capacity of 770,000 tonnes.

Located in Bavaria, South Germany the mill employs 550 people. The mill was

founded in 1887.

UPM-Kymmene Corporation

Pirkko Harrela

Executive Vice President,

Corporate Communications

UPM, Corporate Communications

Media Desk, tel. +358 40 588 3284

communications@upm.com

wwww.upm.com

www.twitter.com/UPM_News

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