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July 3, 2017---The Kotkamills group has been producing Saturating Base Kraft (laminating papers) in Tainionkoski, Imatra on Paper Machine 7 (PM 7) leased from Stora Enso Oyj since the separation of Kotkamills from Stora Enso in 2010. The operations are part of the Group's Industrial Products segment.

Stora Enso Oyj has notified Kotkamills Oy that the leasing agreement concerning Tainionkoski PM7 will be terminated in accordance with its terms to expire at the end of 2018.

To serve its existing customers and fulfill the needs arising from increasing demand for laminating papers, Kotkamills is planning to increase the production capacity of Paper Machine 1 (PM1) on Kotkamills' site in Kotka. In addition, Kotkamills has started preparations to procure external production capacity for laminating papers. The external capacity is planned to be available during the first half of 2018. The planned additional external capacity (excluding PM1 increased capacity) will be higher than the present capacity of Tainionkoski PM 7.

The discontinuation of the Group's operations in Imatra is not expected to have a material impact on the Group's financial position or results of operations.

Kotkamills Group Oyj
Board of Directors

For additional information, please contact:

CEO Markku Hämäläinen, tel.+358 40 721 0548, markku.hamalainen@kotkamills.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com

Kotkamills Group in brief

Kotkamills is a responsible partner that delivers renewable products and performance to its customers' processes via product innovations created from wood, a renewable raw material. The key brands of the company include Absorbex® and Imprex®, both innovative laminating paper products for the laminate, plywood and construction industries. Moreover, Kotkamills offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. In summer 2016, Kotkamills started up a new board machine producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including the capability to add barriers on-machine. All Consumer Boards material solutions are fully recyclable and repulpable.

Kotkamills has two production sites in Finland, located in Kotka and Imatra. The majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.

www.kotkamills.com

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