UPM terminates its pulp purchase contract with APRIL

EoF External Publications / 18 November 2009

(UPM, Helsinki, 12 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.