(UPM, Helsinki, October 3, 2025 at 11:00 EEST) - End of July, UPM announced plans to permanently end paper production in Kaukas and to shift its coated mechanical paper production in Finland to UPM Rauma mill.

The employee consultation processes have now been completed. Paper machine 1 in Kaukas will be permanently closed during Q4. The reduction of personnel is 220. Following the closure, coated mechanical paper production capacity will be reduced by 300.000 tonnes annually.

UPM's pulp, sawn timber and biofuels production and R&D activities at UPM Kaukas integrate will continue as before.

"The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees. As part of the process, we agreed to implement a from-job-to-job program, which has been UPM's established model for change support since 2006," says Matti J. Laaksonen, General Manager, Kaukas and Kymi mills.

"The last few weeks have not been easy for any of us. Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure," Laaksonen concludes.

To ensure safe conditions at the mill following the closure, an after-care team will be in place.

For further information please contact:
Matti J. Laaksonen, General Manager, UPM Communication Papers, Kaukas and Kymi mills,
tel. +358 2041 53609

UPM, Media relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM Communication Papers offers the industry's widest portfolio for newspaper, magazine, marketing and book printing as well as for home and office applications. We employ around 5,000 people and operate 10 modern paper mills globally. Our annual production capacity is 4.3 million tonnes of graphical paper. www.upmpaper.com

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UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,800 people worldwide, with annual sales of approximately €10.3 billion. Our shares are listed on Nasdaq Helsinki Ltd.
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