UPM will streamline its Group Head Office operations

(UPM, Helsinki, March 1, 2006) – UPM plans to initiate efforts to improve efficiency and space utilization at the Group Head Office in Helsinki, Finland. The company is set to launch employee negotiations in various Helsinki-based functions. The planned headcount reduction of approximately 30 persons is anticipated by the end of the year. Currently, nearly 400 people work in various functions at Eteläesplanadi 2.

In addition, UPM plans to sell its real estate holdings in Eteläesplanadi 2, Kiinteistö Oy Heikkiläntie 8 in Lauttasaari, and Kiinteistö Oy Pientare on Snellmaninkatu. UPM will thereafter continue to occupy the Eteläesplanadi premises under a long-term lease.

By the end of 2006, around 100 employees will transfer to more cost-efficient premises in the capital area. UPM’s Lauttasaari-based real estate unit will move to the same premises. Around 270 employees will continue working at Eteläesplanadi 2. Of the 200 people working at corporate functions, 185 will work at the Eteläesplanadi 2 premises. The rest of the people based at Eteläesplanadi work within the divisions and their support functions.

Furthermore, UPM plans to start outsourcing all facility management services for Eteläesplanadi 2. The aim in outsourcing these services is to increase flexibility and save costs.

For more information, please contact:
Mr Jyrki Salo, Executive Vice President and CFO, tel +358 204 15 0011