UPM to start negotiations on closing down two of the oldest paper machines at Kymi mill

UPM is to start negotiations with employee representatives at Kymi paper mill in Kuusankoski, Finland, with a view to closing down paper machines 1 and 2 and making the relevant employee arrangements. A total of 65 employees are affected by the negotiations, which will seek the best possible solution both for them and for the employer.

Built in 1935 and 1936, paper machines 1 and 2 produce bleached machine-glazed kraft papers. Their total annual production capacity is 20,000 tonnes. The paper is used to make products such as bags, labels, and laminates for the packaging industry. It is planned to close the machines down at the end of this year.

Production on these old machines is unprofitable, and their maintenance would require investments that cannot be financially or technically justified. Following closure, most of the product range will be transferred for production at UPM's Tervasaari mill in Finland.

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, UPM, Kymi, Vice President and General Manager, tel. +358 204 15 3600
Mr Matti Lievonen, UPM, President, Fine and Speciality Papers Division, tel. +358 204 15 0113

UPM
Corporate Communications
September 6, 2005