UPM Timber to begin negotiations on reorganisation and production curtailments

Archive 3.11.2010 0:00 EET

(UPM, Lahti, 3 November 2010 at 11:00) – The UPM Timber business unit will begin negotiations on reorganisation of its operations in Finnish and Russian staff functions, production and in sales units abroad. The negotiations will also cover production curtailments in Finland for the year 2011.

The planned measures on operations would affect 52 salaried employees in staff functions and production units in Finland and Russia and in sales units abroad. The planned measures aim to improve the cost competitiveness of the business and to adjust the number of personnel to the new business operating model.

The weakening market situation, availability of cost competitive raw material and poor business profitability have also brought on a need to negotiate production curtailments in Finland for 2011. The possible temporary lay offs resulting from production curtailments are to be carried out according to mill-specific plans.

The negotiations will commence in week 45 and last approximately 6 weeks. UPM will prepare for possible reductions by compiling a transition security plan that will support the rapid re-employment of employees.

For further information, please contact (between 11:30 and 12:30):
Mr Tuomo Visanko, Senior Vice President, UPM, Forest and Timber Business Area, tel. +358 20 415 6300
Mr Arto Halonen, Senior Vice President, UPM, Timber, tel. +358 40 823 2877

UPM Timber produces sustainable and advanced timber products for construction. The annual production capacity is 2.3 million cubic metres of sawn timber and 420,000 cubic metres of further processed products. UPM Timber has 12 production units in Austria, Finland, France and Russia and it employs approximately 1,200 people. UPM Timber's Finnish mills are situated in Lappeenranta (Kaukas), Kajaani, Parkano (Aureskoski), Pietarsaari (Alholma), Korkeakoski, Heinola and Pori (Seikku). UPM Timber employs approximately 800 people in Finland.