Helsinki - UPM will respond to the growing demand for label papers by increasing the label paper production capacity at its Tervasaari mill in Valkeakoski, Finland. The rebuild of the Tervasaari paper machine 8 will increase the capacity by almost 30,000 tonnes annually.

The installation work will start in March 2011 and the main part of it will be done in early 2012. The whole new capacity will come on stream during the second quarter of 2012.

"With the rebuild of the Tervasaari PM 8 we want to ensure our market leader position in label papers and support our customers' growth," says General Manager Juha Kääriäinen of UPM Tervasaari.

UPM Tervasaari paper mill in Valkeakoski manufactures yearly some 360,000 tonnes of label, envelope and kraft papers. The mill employs about 400 people.

The PM 8 was built in 1996 and the machine produces label base papers. Its major rebuilt was in year 2006.