UPM to decrease production at two of its spruce sawmills in Finland due to log shortage

(UPM, Lahti, April 10, 2006) – UPM will temporarily decrease its spruce sawn goods production and lay off personnel at two of its sawmills in Finland: Seikku Sawmill in Pori and Alholma Sawmill in Pietarsaari.

The reasons for this are the remarkably weakened availability of spruce logs and the unprofitableness of spruce sawmilling caused by the high price of spruce logs.

The decrease in production and the lay-offs will be carried out by reducing one shift from both sawmills during the period of mid May till the summer holidays.

The annual production capacity of the Seikku Sawmill is 350,000 m³ and of the Alholma Sawmill 200,000 m³ of spruce sawn goods. Altogether 140 persons are working at these mills.

Further information:
Tuomo Visanko, Senior Vice president, Operations, UPM, Wood Products Division tel. +358 (0)400-352 990.