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UPM Pellos Mills Europe's Largest Manufacturer of Coniferous Plywood

Helsinki, Finland 30 May 2016 -- UPM Plywood's Pellos mills have crossed a significant milestone of 10 million cubic meters in all-time total production. The achievement is unique in Europe and rare also in the world scale. The operation that began in 1964 as a small chipboard factory has expanded over the decades to comprise three plywood mills forming a world-class plywood production unit.

"Pellos mills are clearly one of our main production units. They account for about half of our total production capacity, and practically all of the spruce plywood production", says Mika Kekki, Vice President, Production & Operations at UPM Plywood. "The competition in the coniferous plywood is very tough. Still, Pellos mills have managed to establish themselves as the leading supplier to the European market. This is thanks to the strong-minded development work and highly qualified personnel. In addition to technical development, working methods at the mills have been actively developed locally in co-operation with the staff, "continues Kekki.

UPM mills Pellos production efficiency has improved significantly over the past two decades. For example, the volume of production per hour worked has more than doubled. In recent years, special attention has been paid to improving safety at work. The number of accidents has fallen by more than 90% over the past five years.

Development of the safety, efficiency and working methods as well as the product quality will be a key part of securing the mill's competitiveness also in the future. More than 90% of the Pellos mills' production is exported. Pellos products compete in the international market, where the most serious competitors come from clearly lower-cost countries, especially from South America.

UPM Pellos plywood mills manufacture uncoated and coated spruce plywood and twin mixed plywood mainly for various construction end-uses. Pellos mills' combined production capacity is 480 000 m3/a and the mills employ about 600 persons.

UPM Plywood manufactures high-quality WISA® plywood and veneer products mainly for construction and transport industries and the new thermo-formable UPM Grada® wood material for the form pressing industry. The turnover of UPM Plywood in 2015 was EUR 439 million and it has about 2,400 employees. UPM Plywood has six plywood mills and a veneer mill in Finland, and plywood mills in Russia and Estonia. - www.wisaplywood.com, www.upmgrada.com

UPM - Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com


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