UPM begins co-determination negotiations on lay-offs with personnel at Aureskoski and Kajaani Sawmills

UPM is starting co-determination negotiations today about lay-offs at its Aureskoski and Kajaani sawmills. The lay-offs will concern all the employees at these mills and are linked to the need to reduce production at the plants in question.

The cutback in production is due to the weak price level of redwood timber in Finland and the main markets in Europe because of oversupply. The cutback will be implemented by going over to a shorter working week for the time being starting in August after the summer break.

The production capacity of both the Aureskoski sawmill and the Kajaani sawmill is 200,000 cubic metres of redwood timber a year. The lay-offs will not affect further processing operations carried out at the Aureskoski sawmill.

For further information, please contact:
Tuomo Visanko, Senior Vice President, Operations, UPM Wood Products Division,
tel. +358 400 352 990.

UPM, Wood Products Division
17 June 2004

UPM is one of the leading manufacturers and developers of wood products in Europe. The company offers high-quality WISA wood products solutions for building and industrial applications. The company has an annual production capacity of about 2.2 million cubic metres of sawn timber, redwood accounting for some 1.3 million cubic metres.