UPM Signs Landmark Conservation Easement Agreement in Minnesota

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UPM, Heslinki, Finland, this past week sold to the State of Minnesota (USA) Department of Natural Resources a conservation easement on 187,876 acres (76,000 hectares) of UPM-owned forest land in Northern Minnesota. UPM will receive $44 million (approximately EUR 36 million) for the easement and will record a pre-tax capital gain of $42 million (approximately EUR 34 million) in the company's third quarter results.

Under the conservation easement, UPM retains ownership of the land and its Blandin paper mill in Grand Rapids, Minn., will continue to use it as a working forest. The easement provides the public with access for recreational purposes such as hunting, fishing, hiking, and snowmobiling in perpetuity. UPM's Blandin mill will continue to manage the forest under its Smart Forestry system, which is designed to enhance productivity and support economic and environmental sustainability. The land is certified to comply with the Sustainable Forestry Initiative.

The easement preserves conservation values that protect the recreational, working forest, and natural and scenic resources of the affected land. Blandin can satisfy its obligations under the easement by continuing its certification by the Sustainable Forestry Initiative. The Minnesota Department of Natural Resources will conduct audits for compliance.

"UPM believes in the multiple uses of our forest resources for economic, ecological and public benefit, and our forestry professionals have always managed the land for these varied uses," said Joe Maher, GM at UPM Blandin. "This landmark conservation easement in the U.S. shows vision and cooperation, to the benefit of all groups who care about our forest lands. UPM is pleased to be part of it."