Finnish paper and forestry group UPM-Kymmene announced on Friday that  it planned to build a 12 million euro plant in Karlsruhe, Germany to make wood plastic composite. Production was aimed at the growing Central European market and will employ some 50 people.

The composite material is made mainly from surplus paper and plastic left over from the production of self-adhesive label materials, a UPM-Kymmene statement said.