UPM president and chief executive Jussi Pesonen said the Finnish papermaker was "very confident" about the price increases, confirmed in November (PrintWeek, 4 November).

Speaking to the financial media in Helsinki, Pesonen said that "substantial" indicated the firm's attitude and commitment towards the price rises.

A price increase of 10% would add 218m (E310m) to UPM's earnings before interest and taxes, but Pesonen would not comment on the rises UPM was after.

However, it is thought the firm will look for increases of between 5-8% in Europe for its magazine and graphic fine paper grades.

Pesonen said he was not too concerned about rises in oil and energy costs, as they could be partly offset by the company's self-sufficiency in energy production and its cost-efficient mills.

UPM had also been able to compensate for the 10% decline in the US$ by charging more to customers buying paper in that currency.

"When energy prices are going up, like they are in Europe and in many other places, to have a high self-sufficiency rate in energy makes you different," he said.

UPM plans to increase capacity overseas by doubling its output at its plant at Changshu, near Shanghai to 800,000 tonnes per year with the installation of a 450,000 tonnes per year fine paper machine in 2005.

A 1m tonnes pulp mill in Uruguay to serve the Changshu operation could also form part of its future plans.

"Eastern Europe is another area of interest for UPM, with Russia being a big and fast growing market," said Pesonen.

Swedish pulp producer Sdra Cell is to increase the price of its northern bleached softwood kraft (NBSK) pulp by $30 per tonne to $630 per tonne, with effect from 1 December.

Story by Andy Scott