UPM prepares to downsize spruce sawmilling in autumn, starts co-determination negotiations at the Leivonmäki sawmill

(UPM, Helsinki, August 14, 2006) – UPM has today opened co-determination negotiations concerning the possibility of temporary lay-offs at the Leivonmäki sawmill in Central Finland. The rapidly rising price and limited supply of wood from harvestable stands in the autumn season have weakened the possibilities to operate.

Furthermore, UPM will continue with the production cuts at the Alholma sawmill that were agreed in spring. Sawing at Alholma will have to be reduced to one shift from its previous two.

Annual capacity at the Leivonmäki sawmill is 75,000 m3 of sawn spruce, and the mill employs around 65 people. Located in Pietarsaari, the Alholma mill has a production capacity of 200,000 m3 of sawn spruce and pine a year, and employs around 85 people.

For further information please contact:
Mr. Kari Hyvönen, Group Director, UPM, Wood Products, tel. +358 400 258 293 in production related questions
Mr. Sixten Sunabacka, Vice President, UPM, Forestry and Wood Sourcing in Finland, tel. +358 400 366 148 in questions related to wood sourcing


UPM is one of the world's leading forest products companies. The company's businesses focus on papers, converting materials and wood products. The company offers high-quality WISA wood products solutions for building and industrial applications. The sales of UPM's Wood Products Division in 2005 was 1.3 billion euros, and it employs 6,500 people.