International Paper Reaches Agreement to Sell Ownership Interest in Ilim Joint Venture

UPM Specialty Papers joins CELAB-Europe to promote the development of a sustainable and circular business model in the self-adhesive label industry; the target is to ensure that 75% of the used liner and matrix materials in Europe are recycled in a circular fashion by 2025. “As part of our eco-design approach, UPM actively looks for innovative ways to recycle our products at the end of their life. UPM Specialty Papers is excited to support industry-level initiatives to promote circularity in the self-adhesive label business,” highlights Mikko Rissanen, Director, Technology at UPM Specialty Papers.

HIGHLIGHTS • Pulp sales of 2,722 thousand tons (+2% vs. 4Q20). • Paper sales of 371 thousand tons (+5% vs. 4Q20). • Adjusted EBITDA1 and Operating cash generation²: R$6.4 billion and R$4.8 billion, respectively. • Adjusted EBITDA1 /ton from pulp of R$2,114/ton (+59% vs. 4Q20). • Adjusted EBITDA1 /ton3 from paper of R$1,619/ton (+32% vs. 4Q20). • Average net pulp price in export market: US$630/ton (+38% vs. 4Q20). • Average net paper price3 of R$5,109/ton (+24% vs. 4Q20). • Pulp cash cost ex-downtime of R$747/ton (+20% vs. 4Q20). • Leverage down to 2.4 times in USD and 2.5 times in BRL.

West Linn Paper Company today annouced that it is ceasing operations and will commence a winding up of its business supervised by its second lien lender. "We are deeply disappointed to end the mill’s 128 year history, the last twenty of which resulted from a major restructuring and restart when our current ownership took control of West Linn Paper Company. The commitment and support that we received from our employees, our lenders and our owners as we sought to adapt to structural changes in our markets has been remarkable. However, several unforeseeable events have led to a significant reduction in available pulp, making continued operations impossible. As a result we will wind up our operations as quickly and efficiently as possible, beginning immediately." states Brian Konen, Chief Operating Officer for West Linn Paper Company. Company officials said that orders for stock product will continue to be accepted. Orders that have been produced but not yet shipped will be shipped. Manufacturing orders that have been accepted, but not yet produced, will be reviewed and customers will be contacted shortly with confirmations as to whether those orders will be produced. The Company will not be accepting new manufacturing orders going forward.