UPM Timber to reorganise and continue production curtailments

(UPM, Lahti, 13 January 2011 at 10:00) – UPM’s Timber business has concluded its employee negotiations started in last November. As a result UPM Timber has decided on reorganisation of its operations in Finnish and Russian production units, staff functions and in sales units abroad. The production curtailments in Finland have also been decided to be continuing in 2011 according to market demand.

The negotiations were started in November for reducing 52 salaried employees. The decided measures on operations affect 45 salaried employees in staff functions and production units in Finland and Russia and in sales units abroad. The measures aim to improve the cost competitiveness of the business and to adjust the number of personnel to the new business operating model.

The weakening market situation, availability of cost competitive raw material and poor business profitability have also brought on a need to continue production curtailments in Finland during 2011. The possible temporary layoffs resulting from production curtailments are to be carried out according to mill-specific plans.

UPM has prepared for personnel reductions by compiling a transition security plan that will support the re-employment of employees.

For further information, please contact (after 10.30 a.m. Finnish time):
Mr Tuomo Visanko, Senior Vice President, UPM, Forest and Timber Business Area, tel. +358 20 415 6300
Mr Arto Halonen, Senior Vice President, UPM Timber, tel. +358 40 823 2877

Notes to editors
UPM Timber produces sustainable and advanced timber products for construction. The annual production capacity is 2.3 million cubic metres of sawn timber and 420,000 cubic metres of further processed products. UPM Timber has 12 production units in Austria, Finland, France and Russia and it employs approximately 1,200 people. UPM Timber's mills in Finland are situated in Lappeenranta (Kaukas), Kajaani, Parkano (Aureskoski), Pietarsaari (Alholma), Korkeakoski, Heinola and Pori (Seikku). UPM Timber employs approximately 800 people in Finland.