Helsinki, 2011-05-06 08:30 CEST (GLOBE NEWSWIRE) -- (UPM, Helsinki, 6 May 2011 at 9:30 EET) – UPM has agreed to sell its Lohja veneer mill from the Plywood Business Area to the mill’s operative management. In addition to mill’s businesses, the agreement covers the mill real estate, buildings, machinery and property. The mill’s personnel will continue to work with the new, to be established, company. The parties have agreed not to disclose the value of the deal. The transaction is estimated to be completed in May 2011.
The Lohja veneer mill – previously known by the name Mahogany – became part of UPM in 1980 when Rauma-Repola bought the mill. UPM has strived to maintain the mill’s competitiveness by developing and renewing its production. During the last decade the mill’s profitability has weakened. As the thin veneer market has gone through a radical change, manufacturing of special products has not offered the synergies UPM has sought after.
”I am pleased with finding a buyer to continue the operation of the mill. The Lohja thin veneer mill is one the most modern in the world. I believe it has a good potential to operate profitably as an independent company”, says Pia Pasi, UPM Plywood’s Vice President for the Industrial Business Unit.
The Lohja veneer mill’s production capacity is about 14,000 cubic metres of sliced, staylog cut and rotary cut structural and face veneer. The main raw material of veneer is birch. Veneer is used primarily in furniture manufacturing. The mill has about 70 employees.
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UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 15 countries. In 2010, UPM's sales amounted to EUR 8.9 billion. UPM's shares are listed on the Helsinki stock exchange. UPM — The Biofore Company — www.upm.com