UPM ensures wood supply via enhancing cooperation in Russia

Novgorod, Russia (News release) -- Today, HASSLACHERLES, UPM Chudovo, IKEA Industry Novgorod and the Administration of the Novgorod region have signed a 4-parties letter of intent aiming at securing wood sourcing for UPM, IKEA Industry and HASSLACHERLES sites located in the Novgorod region in Russia.

HASSLACHERLES will lease a forest from the Novogod region and use coniferous species to increase the production volume of glued timber beams and agrees to sell other wood species to UPM and IKEA Industry. The commercial terms of the sale will be subject to separate agreements between the relevant parties.

"We are happy to make a big step in deepening our successful partnership with UPM and IKEA. This allows for all sorts of lumber beeing processed in the region - from high quality birch veneer to low-grade Aspen," comments Franz Meliessnig, CFO of HASSLACHER NORICA TIMBER.

"UPM is actively seeking partnerships to develop its business everywhere we operate. This letter of intent is a great example of a win-win cooperation," says Mika Kekki, Vice President, Production and Operations, UPM Plywood.

"I am sure it will play an important role in securing wood supply for our expanded Chudovo mill," he continues.

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UPM ensures wood supply via enhancing cooperation in Russia

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