Metsäliitto and Vapo are exploring the possibilities for bio-fuel production

Metsäliitto Group Press release 28 May 2009 Metsäliitto Group and Vapo have initiated a joint project to explore the possibilities for establishing a wood-based bio-fuels factory in the Baltic Sea region. In addition to the economic feasibility of production, the project is also assessing different alternative locations around the Baltic rim. Kemi and Äänekoski in Finland, Jönköping in Sweden and Kunda in Estonia are being investigated as potential locations. An environmental impacts assessment process will also be initiated in these locations. The work for finding other potential locations also continues. "Liquid bio-fuels are one possible line of development for new wood-based products, and we want to take a closer look at it," says Kari Jordan, President and CEO of the Metsäliitto Group. Metsäliitto and Vapo are well placed to develop a bio-fuel business based on wood and peat. The factory now being investigated would use as its raw materials different forest-based energy, peat from drained swamps and reed canary grass, but the utilisation of, for example, wood-based building waste would also be possible. The end products would be synthetic liquid and gaseous bio-fuels. The investigation is expected to take approximately one year. If the decision is taken after the investigation to implement the factory investment, a separate joint venture company will be established, owned fifty-fifty between the Metsäliitto Group and Vapo. Further information: Hannu Anttila, Executive Vice President, Strategy, Metsäliitto Group, tel. +358 10 465 5111 Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541 This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.