Stock Exchange release May 23, 2000 09:00:00 AM CET

METSO'S VALMET CONVERTS KYMI PM 8 TO WOODFREE COATED PAPERS

UPM-Kymmene orders the rebuild of Kymi's PM 8 at Kuusankoski, Finland from Valmet, Metso Corporation's fiber and paper technology business area. Originally supplied by Valmet and started up in 1983, the line will be converted to coated paper production. The cost of the Valmet deal will be about euro 150 million and the modernised line will start up in autumn 2001.

The project incorporates Valmet's new OptiConcept technology, the bulk of the deal consisting of a new off-machine OptiCoater coating line. The paper machine will be modernised with the very latest fine paper technology, allowing a production speed of 1500 m/min. The rebuild also includes air systems, finishing and packaging.

The production capacity of the 8.5 metre wide machine will be 400,000 tonnes of coated woodfree papers. The conversion, originally announced in December 1999, is a strategic step towards meeting the growing demands for coated papers in commercial printing.

The plant will be delivered by Valmet's Järvenpää, Jyväskylä, Hollola, Raisio and Turku works. The state-of-the-art quality and control automation will be supplied by Neles Automation of Tampere, another business area of the Metso Corporation.

This modernisation deal is a result of comprehensive co-operation between UPM-Kymmene and Valmet in the development of both WFC production and products.

Kymi Paper Oy, with an annual capacity of 800,000 tonnes of coated and uncoated papers and 525,000 tonnes of bleached pulp, is part of UPM-Kymmene Fine Paper, a leading European manufacturer of fine papers. Its two mills - Kymi Paper Oy in Finland and Nordland Papier AG in Germany - and an associated company operating in China have a total capacity of about 2.3 million tpa in a complete range of coated and uncoated fine papers for graphic use and business communication. UPM-Kymmene Fine Paper is a member of the UPM-Kymmene Group, one of the world's largest manufacturers of printing papers.

Valmet Oy is one of the world's leading suppliers of technology, systems and equipment for the pulp, paper, conversion and board industries. In 1999 it had a pro forma turnover of euro 1711 million and a staff of around 10,600. In addition to Valmet, Metso Corporation's business areas are automation and control technology and machinery.