UPM renews supply chain and plans service centres in Finland and Germany

(UPM, Helsinki, 21 April 2009 at 11:15) – UPM will renew its paper business supply chain to better serve the current business needs. The plan is to establish a new supply chain platform in order to create a high performing supply chain which combines operational efficiency and customer focus.

As part of the development, UPM is planning to restructure its supply chain operations in Northern and Central Europe to facilitate centralised steering of operations. In Northern Europe, the plan is to establish a regional supply chain centre in Tampere, Finland. In Central Europe, UPM is planning two regional supply chain centres in Germany: one in Augsburg and one in Dörpen.

Currently, the supply chain operations – production planning, inventory management, order fulfilment, logistics and customer service – are being taken care of in many locations at the paper mills and in the sales offices in these regions.

According to the plan, UPM will establish a service centre with around 80 positions in Tampere. The tasks are currently being done at the Finnish paper mills as well as at the paper customer service in Helsinki.

In Central Europe, the plan is to establish two service centres for supply chain, one in Augsburg and one in Dörpen, with altogether around 180 positions. The tasks are currently being done at the company's paper mills in Austria and Germany and in sales offices in Germany.

"The new platform enables us to further develop our supply chain processes and ways of working. We will be able to increase the efficiency and profitability of our operations. Through more efficient operations we will also be able to further improve our customer service," says Bernd Eikens, Senior Vice President, Supply Chain, UPM Paper Business Group.

When the announced measures are completed as planned, the number of employees in the supply chain in Europe will be reduced by about 100 employees during 2009 and 2010.

Furthermore, UPM plans to centralise part of positions within information technology, payroll and human resources to its service centre operating in Tampere, Finland. The plan includes altogether about 50 positions within payroll and HR services. These tasks are currently being done in several locations in Finland. The plan also includes the transfer of about 30 positions within IT from the neighbouring city of Valkeakoski to Tampere.

Employee negotiations on these plans will follow local legislation in the countries. UPM is prepared to provide support for relocation. Possibilities for retirement, relocation within UPM and retraining will be handled in the negotiations.

UPM's service centre in Tampere, Finland, was established in 2007 to serve as a service centre for the Group's global finance and control. There are currently altogether 220 UPM employees working for finance and control, IT, global sourcing and energy business in the service centre. According to the plans, the amount of employees will total around 400 by the end of 2010.

For further information, please contact:
Mr Bernd Eikens, Senior Vice President, Supply Chain, UPM Paper Business Group, tel. +358 40 488 9016, between noon and 15:00 Finland time
Mr Janne Ussa, Vice President, Supply Chain, Northern Europe, tel. +358 40 727 4587, between noon and 15:00 and after 16:00 Finland time
Mr Petteri Kalela, Vice President, Supply Chain, Central Europe, tel. +49 160 533 7118, between noon and 16:00 Finland time
Mr Jari Haapaniemi, Director, Operational HR Services, Northern Europe, tel. +358 20 415 0620
Mr Turkka Keskinen, CIO, tel. +358 40 540 9693, after noon Finland time

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
communications@upm-kymmene.com