UPM is planning production curtailments and measures to improve efficiency for timber and further processing businesses

(UPM, Helsinki, 1 December 2011 at 11:30) – UPM Timber and UPM Living business units are to begin co-operation negotiations concerning production curtailments for the first quarter of 2012 and measures to improve production efficiency.

“Business has been negatively affected by a decrease in demand, weak cost competitiveness and the overcapacity of sawn timber and further processed wood products in Europe. The aim of the plan is to improve the long-term cost competitiveness in the business areas of sawn timber and further processed wood products,” states Ilkka Ylipoti, Senior Vice President, UPM Timber.

The negotiations concerning the efficiency improvement of production will begin at Aureskoski and Lappeenranta, in Finland, and at Pestovo, in Russia. If the planned rationalisation measures are carried out, the number of employees will be reduced by, at most, 59 people.

The negotiations concerning the production curtailments of the first quarter of 2012 will be held at all the Finnish sawmills and further processing mills apart from the Heinola further processing mill. The length of the temporary lay-off periods caused by possible production curtailments will vary by unit, but they will not last longer than 90 days. The production curtailment negotiations concern 554 people in Finland.

UPM Plywood adjusts the production when needed

Co-operation negotiations started at the end of October regarding adjustment of plywood production in Finland have been completed. Based on the negotiations, the company has decided to adjust production by lay-offs totalling no more than 90 days by the end of 2012 at Joensuu, Jyväskylä, Ristiina and Savonlinna plywood mills when needed.

“Timing and duration of the lay-offs will be decided mill-by-mill based on the market situation and they will, if executed, cover the mills’ personnel as a whole.  The mills’ power plants and the Savonlinna investment project are left outside the adjustment measures,” says Petri Parjanen , Director of Human Resources, UPM Plywood.

For more information, please contact (after 11.45 a.m.):
Mr Ilkka Ylipoti, Senior Vice President, UPM Timber, sawn timber business unit, tel. +358 (0)40 556 0808
Mr Arto Halonen, Senior Vice President, UPM Living, further processing business unit, tel.+358 (0)40 823 2877
Mr Petri Parjanen, Director, HR, UPM Plywood, tel. +358 (0)40 833 5297

Background information for the press

UPM Living manufactures sustainable, beautiful and recyclable wood-based products for consumers and industry. Manufactured from certified wood raw materials, the products can be used to create top-quality interior decoration solutions or build a high-quality garden or house. The seven UPM Living production facilities are located in Finland (Aureskoski, Heinola, Lappeenranta, Uusikaarlepyy, Pori), France (Aigrefeuille) and Russia (Pestovo). Annual production capacity is 420.000 m3 of wood products. UPM Living is part of the UPM Forest and Timber Business Area. www.upmliving.com

UPM Timber manufactures top-class sawn pine and spruce timber 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). UPM Living is part of the UPM Forest and Timber Business Area. www.upmtimber.com    

UPM Plywood offers high-quality WISA® plywood and veneer products mainly for construction and transport industries as well as the formable UPM Grada plywood for furniture and manufacturing industries. The sales of UPM Plywood in 2010 were EUR 347 million and it has about 2,500 employees. UPM has 6 plywood mills and a veneer mill in Finland, and plywood mills in Russia and Estonia. www.wisaplywood.com , www.upmgrada.com

UPM leads the way in integrating bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. The company’s business is divided into three business areas: Energy and Pulp, Paper and Engineered Materials. UPM employs around 24,500 people and has production facilities in sixteen countries. The company’s annual turnover amounts to more than EUR 10 billion. UPM's shares are listed on the Helsinki Stock Exchange.  UPM – The Biofore Company www.upm.com