UPM has decided to restructure its sawn timber and further processing operations - UPM sells its Kajaani sawmill to Pölkky Oy

(UPM, Helsinki, 29 June 2012 at 12:00 EET) – UPM has concluded co-determination negotiations and decided to restructure its sawn timber and further processing operations in Finland and renews its business strategy. UPM has made a contract to sell its Kajaani sawmill to Pölkky Oy. Pölkky will continue sawn timber operations in Kajaani and all UPM sawmill personnel in Kajaani will continue working for Pölkky as permanent employees. UPM’s Aureskoski and Heinola further processing mills will be closed down by the end of 2012.

”We will renew our operations model in Finland. The new sawn timber and further processing operations model will be based on wood sourcing to our mill integrates. We will continue our timber operations according to the new operations model at locations near our pulp and paper mills in Pietarsaari (Alholma), Pori (Seikku), Juupajoki (Korkeakoski) and Lappeenranta (Kaukas). As a significant producer in Northern Finland, Pölkky will be a good successor to continue sawn timber production in Kajaani”, says Anssi Klinga, Senior Vice President, UPM Timber.

”Kajaani sawmill will support well our production concept based on good quality northern raw material and therefore enables us to improve our customer service in export and domestic markets”, says Jouko Virranniemi, CEO, Pölkky Oy.

UPM has also decided to end production at its Aureskoski and Heinola further processing mills and restructure its Timber head office functions. Aureskoski and Heinola mills will be closed down by the end of 2012 which will result in permanent layoffs of 97 mill employees. UPM will initiate its Work to work –program which aims at fast re-employment.

UPM’s Timber business will relocate its common sales and management staff functions from Lahti to Tampere and to mill locations in Finland. The number of staff function jobs will be reduced by 42 in Finland. UPM supports the relocation and re-employment with specific support measures.

For more information, please contact:
Mr Anssi Klinga, Senior Vice President, UPM Timber, tel. +358 50 466 1470
Mr Jouko Virranniemi, CEO, Pölkky Oy, tel. +358 400 644 999

Finnish press conferences today, 29 June 2012, at 13:30 EET:
Kajaani, Sawmill office, with Anssi Klinga, SVP, UPM Timber and Jouko Virranniemi, CEO, Pölkky Oy
Parkano, UPM Aureskoski, Aurejärventie 70, with Kaj Kulp, Director, Business Development, UPM Timber
Heinola, Sawmill office, with Aki Temmes, Director, Business Control, UPM Timber
Lahti, Niemenkatu 16, with Heikki Vappula, President, Energy and Pulp Business Group
Contact person: Antti Ratia, Head of Communications, tel. +358 40 487 2173

Notes to editors:

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,000 people and it has production plants in 16 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com 

UPM Timber manufactures top-class sawn pine and spruce timber and further processed products for the construction and joinery industries. UPM Timber annually produces around 2.3 million cubic metres of timber from wood acquired from certified forests. UPM's seven sawmills are located in Finland, Austria and Russia. In Finland, UPM operates five sawmills in Lappeenranta (Kaukas), Kajaani, Pietarsaari (Alholma), Korkeakoski and Pori (Seikku). www.upmtimber.com, www.upmliving.com

Kajaani sawmill employs 83 people and manufactures sawn pine and spruce timber with an annual production capacity of 210,000 cubic metres.

Aureskoski further processing plant has 53 employees.  The plant produces interior panels and floorings with an annual production capacity of 130,000 cubic metres.

Heinola further processing plant employs 46 people and produces laminated wood panels with an annual production capacity of 20,000 cubic metres.

Pölkky Oy is the largest private wood processing company in Northern Finland. The sawmills and further processing facilities run by Pölkky Oy are located in Kuusamo and Taivalkoski. Pine represents 80% and spruce 20% of our production. Pölkky also has a pressure treatment facility in Oulu.

The majority owners of Pölkky Oy are Jouko and Antti Virranniemi. The company's annual turnover is approximately 100 million euro, and the company employs nearly 220 professionals in the field. The company manufactures an annual total of 450,000 m³ sawn timber products, of which about 40% is further processed. 70% of the production is exported. In addition to its headquarters in Kuusamo, Pölkky Oy has production facilities in both Taivalkoski and Oulu and also in North of Kuusamo Kitkawood Oy. www.polkky.fi


UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com
www.twitter.com/UPM_News