UPM Continues Growth with PM Rebuilds at Nordland and Changshu Mills

UPM, Finland, continues to grow in the release liner segments with the rebuild of PM 2 at its Nordland mill in Dörpen, Germany. The company expects steady growth to continue in all markets, driven by favorable economic conditions and a strong increase in specialty paper demand for labelling, packaging, and e-commerce as well as in medical and hygiene applications.

To strengthen its position, UPM will rebuild and convert No. 2 paper machine at Nordland mill from fine paper to glassine paper production. The machine will be equipped with new finishing equipment and start producing glassine paper in Q4 2019. The planned capacity after the rebuild will be 110,000 metric tpy. The total investment in Nordland is EUR 116 million. The production of wood free papers on PM 2 in Nordland will continue until Q3 2019 and the machine will be producing both glassine and wood free paper during the ramp-up phase.

UPM has also decided to further increase the release liner base paper capacity at UPM in China. Since the successful startup of PM 3 in Changshu, UPM has established a strong position in the label paper segment in Asia. By installing a second supercalender on PM 3, there will be an additional capacity of more than 40,000 metric tpy of glassine paper as of Q1 2020. The total investment in Changshu is EUR 33 million.

"We see strong growth in all our market segments and we are committed to be part of the growth. The planned investments in Nordland and Changshu, along with the earlier announced calender investment at our Jämsänkoski mill, will increase customer confidence in their global growth in release liner applications. The planned installations will also enable increased specialization of our assets. Thus we can improve our operational efficiency and strengthen supply security," said Bernd Eikens, EVP of UPM Specialty Papers.

UPM Specialty Papers produces labeling and packaging materials to global markets and fine papers to Asian markets. Its main customers are paper converters, distributors, retailers, and printers. UPM Specialty Papers is a leader in sustainable development in the industry. Its high performance papers are produced in Finland and China. UPM Specialty Papers http://www.upmspecialtypapers.com employs approximately 1,700 people in Finland, China, U.S., Japan, South Korea, Singapore, and Australia.

UPM leads the forest-based bioindustry into a sustainable, innovation-driven and exciting future across six business areas—UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood. UPM provides sustainable and safe solutions to the growing global consumption. Products are made of renewable and recyclable materials. The group employs around 19,100 people worldwide and its annual sales are approximately EUR 10 billion.