UPM has concluded negotiations with employees at Kymi mill

The negotiations with employee representatives have been concluded at UPM Kymi paper mill in Finland. The negotiations were related to closing down the mill’s PM 1 and PM 2 and the relevant employee arrangements. The negotiations, which started on September 13, applied to 59 employees instead of the 65 previously announced.

The result of the negotiations is that the paper machines will be closed down by the end of this year. The personnel arrangements will include various retirement plans and relocation of personnel to other positions at UPM’s mills in Kuusankoski and elsewhere within the Group. The aim is to implement the personnel arrangements during 2006.

The shutdown of PM 1 and PM 2 is due to unprofitable operations. Built in 1935 and 1936, these paper machines are the oldest at the Kymi mill and have been used to produce bleached machine-glazed kraft papers. Their total annual production capacity is 20,000 tonnes. The paper’s end-use areas are bags, labels and laminates for the packaging industry. Following closure, most of the product range will be transferred for production at UPM’s Tervasaari mill.

UPM’s Kymi mill is an integrated paper and pulp mill currently employing 1,250 people. The mill will continue to produce coated and uncoated fine papers on three machines. Their total annual production capacity is 940,000 tonnes. In future, the mill is aiming to further develop the operation of these paper machines. The end uses of Kymi’s fine papers include high-quality printing papers, advertising materials, books, magazines, envelopes, business forms, and printing and copying papers.

For further information, please contact:
Mr Yngve Lindström, Vice President and General Manager, UPM Kymi, tel. +358 204 15 3600
Mr Martti Purmonen, Director, Human Resources, UPM Kymi, tel. +358 204 15 3696


UPM
Corporate Communications
October 21, 2005