UPM Raflatac opens state-of-the-art labelstock factory in Changshu, China

Extends UPM Raflatac’s reach to serve demand for paper and film label materials

(UPM Raflatac, Tampere, March 6, 2007) - UPM Raflatac is today celebrating the completion of a new, state-of-the-art labelstock manufacturing centre in Changshu, China, at an opening ceremony for customers. The factory serves fast-growing demand for labels to meet packaging needs in China and the Asia Pacific region by supplying paper and film label materials for standard and special applications. The Changshu facility increases UPM Raflatac’s labelstock offering locally and creates new opportunities to serve markets across Asia.

“We aim to be the number one choice of label converters everywhere we operate. With our new Changshu factory we’ll be providing China our full product range and the superior quality service for which UPM Raflatac is known,” says Heikki Pikkarainen, President of UPM Raflatac.

“We’re seeking strong growth in the Asian market through product quality and customer service,” says Jussi Vanhanen, Senior Vice President, UPM Raflatac Asia Pacific. “Our fully comprehensive Asian network assures the capacity and agility that our customers throughout Asia and globally require from us.”

The Changshu factory is located next to the UPM paper mill by the Yangtze River, about 100 kilometres west of Shanghai. In keeping with UPM’s global emphasis on sustainability and energy independence, the nearly 200 hectare site hosts its own power plant, effluent treatment plant and a harbour. The USD 40 million capital commitment to build the Changshu factory is part of UPM Raflatac’s global growth and investment strategy, which includes expansion in North America with a new facility under construction in Dixon, Illinois in addition to the doubling of film production capacity in Europe carried out in 2006.

For further information please contact:
Mr Heikki Pikkarainen, President, UPM Raflatac, mobile +358 40 760 5758
Mr Jussi Vanhanen, Senior Vice President, UPM Raflatac Asia Pacific, mobile +86 138 1611 7447

About UPM Raflatac
UPM Raflatac is a world-leading supplier of self-adhesive label materials for a wide variety of needs in product and information labelling. In addition, the company is at the global forefront in the development and high-volume production of HF and UHF radio frequency identification (RFID) tags and inlays. UPM Raflatac has around 2,500 employees and made sales of approximately USD 1.3 billion in 2006. The company has a global service network consisting of 11 factories on five continents and a broad network of distribution and slitting terminals and sales offices worldwide. UPM Raflatac is part of UPM. Further information is available at www.upmraflatac.com.

About UPM
UPM is one of the world’s leading forest products groups. The Group's sales in 2006 were EUR 10 billion (approximately USD 13 billion), and it has about 28,000 employees. UPM's main products include printing papers, converting materials and wood products. The company has production plants in 15 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges. www.upm-kymmene.com.