Helsinki - Finnish paper and forestry group UPM-Kymmene Friday said it planned to build a 12-million-euro (18-million-dollar) plant in Karlsruhe, Germany to make wood plastic composite.

Production was aimed at the growing Central European market, the group said, adding it expected to 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.

UPM, with production in 15 countries, is a leading producer of printing paper, specializing in magazine paper, newsprint, fine and speciality paper, converting materials and wood products. (dpa)