The mill is part of the UPM Specialty Papers division, and makes high-quality glassine papers, which are typically used as release liner base papers for labels, for double-sided tapes, and for other specialist industrial applications.
The mill dates back to 1872 and has been producing specialty papers since the 1980s.
Capacity is 300,000tpa. It runs two paper machines, with PM5 the focus of the fresh upgrade.
Tomi Lonka, senior vice president, global specialty papers at UPM Specialty Papers commented: “UPM Specialty Papers has over 40 years of experience producing highly demanding specialty papers.
“This investment underscores our commitment to serving customers in the label, tape and industrial value chains as well as packaging.”
The modernisation project includes rebuilding the drying section of PM5 and a related upgrade to the steam system.
UPM previously invested around €20m to improve energy efficiency at the site.
The timeline for completion of the Tervasaari works is the end of next year.
The overall UPM group of businesses had sales of €10.3bn last year. UPM Specialty Papers accounts for 13% of sales, with turnover of just under €1.47bn.
The business unit claims a number one position in the global labelling materials and release liner base papers and has total production capacity of 2m tonnes across four production sites worldwide, three in Europe and one in China.
