(UPM, Helsinki, 6 October 2008 at 10:00) – UPM will record an impairment charge of approximately EUR 30 million in the fixed assets of the Finnish sawmills within the Wood Products Division in the third quarter of 2008.
Increased cost of wood raw material, weakened demand for sawn timber in the main markets and lower sawn timber prices weaken the profitability of sawmilling.
Since last spring UPM has responded to the weaker market situation and reduced its sawmilling by limiting production at the company's sawmills in Finland. Each mill has followed their own plan to carry out the reductions in the production. UPM estimates that its production of sawn timber in Finland in 2008 will be approximately 300,000 cubic metres, approximately 20%, less than in 2007.
For further information, please contact:
Mr Olavi Kauppila, Senior Vice President, Investor Relations, tel. +358 204 15 0658
Mr Tuomo Visanko, Senior Vice President, UPM Timber, tel. +358 400 352 990