Business News

UPM has renewed its pulp sourcing strategy

Friday 13. November 2009 - UPM will increase the share of plantation based eucalyptus pulp from Uruguay in the paper production of its Changshu paper mill in China. Consequently, at the end of October, UPM decided to terminate its pulp purchase contract with APRIL. The new pulp sourcing strategy has been made possible by the agreement concerning the transfer of the Fray Bentos pulp mill in Uruguay to UPM's ownership. UPM informed APRIL at the beginning of November about its decision to terminate the purchasing contract.

UPM has been purchasing pulp from APRIL for UPM’s Changshu fine paper mill in
China. From the beginning of 2004, UPM’s Changshu mill has received pulp solely
based on acacia coming from plantations. APRIL has an FSC Controlled Wood
certificate to prove the sustainability and legality of the pulp deliveries.

UPM has been working actively together with APRIL and environmental
organisations since 2002 to develop environmental practices at the mill and in
the plantations. UPM requirements have included internationally accepted forest
certification and verified Chain-of-Custody to be in place, an environmental
management system for the wood sourcing and mill processes and transparent
implementation of the high conservation value forest (HCVF) concept, including
cooperation with WWF. UPM has regularly carried out supplier audits in
Indonesia. The latest audit was conducted in October 2009.

The majority of UPM’s production is based on a renewable resource, wood. The
Group is committed to forest management and forest harvesting practices based on
the principles of sustainable development. This commitment covers wood supply
both for UPM’s own mills and the same is required from external pulp suppliers.