Press release

Fortum and Sappi Finland agree on extensive long-term energy cooperation

28 May 2009, 13:11 EEST

Fortumm Markets
Press release
28.5.2009

Fortum and Sappi Finland agree on extensive long-term energy cooperation Fortum and Sappi Finland Oy have agreed on extensive portfolio management, delivery of physical electricity and production balance management. Sappi Finland is a part of the Sappi Fine Paper Europe group, the leading European coated fine paper manufacturer. The company has ten production plants in Europe. Two of these, the Kirkniemi and Kangas mills, are located in Finland. The long-term agreement between Fortum and Sappi Finland will ensure close cooperation at least until the end of 2012. Portfolio management service includes electricity management hedging trades, risk management and reporting. In addition, Fortum takes care of production balance management and physical electricity delivery for Sappi Finland's mills. Sappi's own production covers approximately 600 GWh. The rest of the ca. 1.1 TWh electricity need, is covered by Fortum's deliveries. The present agreement is, therefore, also a considerable electricity delivery contract. “We welcome Fortum Markets as our electricity supply partner convinced by their extensive experience and energy expertise. As we have already a long standing and good cooperation with Fortum Heat and Service on the operation and maintenance of Kirkniemi's power plant, we look forward to extending our partnership” says Martti Savalainen Director Sappi Kirkniemi mill. As part of the acquisition of M-real's coated graphic paper business in the latter half of 2008, Sappi acquired two paper mills in Finland: Kirkniemi mill in Lohja and Kangas mill in Jyväskylä. The mills produce world class coated magazine papers for top quality publications under the Galerie brand. Sappi is now the largest supplier of coated paper in Europe and the world.  “Demand for extensive energy partnership solutions continues to increase in the manufacturing industry. Our versatile energy expertise allows wide cooperation with large and small customers alike, whether operating in Finland, Sweden or Norway - or in them all. It is considerably easier to work with one familiar, reliable partner than with many operators,” says Risto Paldanius of Fortum Markets. Fortum Markets Communications Further information: Martti Savalainen, Sappi Finland Oy, tel. +358 10 464 2475 Risto Paldanius, Fortum Markets, tel. +358 40 501 3669 Sappi is the world's leading producer of coated fine paper used in premium magazines, catalogues, books and high-end print advertising. SFPE is headquartered in Brussels, Belgium. Its brands include Magno, HannoArt, Tempo, Quatro, Royal, Allegro, Cento, Era, Euro, Furioso, Galerie, Mega and Tauro graphic papers, as well as Algro, Leine and Parade speciality labelling and packaging papers and boards. SFPE is a division of Sappi Limited (NYSE, JSE, LSE), a global company headquartered in Johannesburg, South Africa, with manufacturing operations on four continents in 9 countries, sales offices in 50 countries, and customers in over 100 countries around the world. Learn more about Sappi at: www.sappi.com. Fortum is a leading energy company focusing on the Nordic countries, Russia and the Baltic Rim area. Activities cover the generation, distribution and sale of electricity and heat and the operation and maintenance of power plants. Fortum Markets is a leading electricity retailer, and the number one seller of eco-labelled electricity in the Nordic Countries. Fortum Markets buys all its electricity from the Nordic Pool and sells it to household and business customers and other electricity retailers in Finland, Sweden and Norway. In addition to actual electricity, Fortum Markets offers its business customers extensive risk management and portfolio management services.