HELSINKI, FINLAND  – UPM Timber and UPM Living business units are to begin co-operation negotiations concerning production curtailments for the first quarter of 2012 and measures to improve production efficiency.

“Business has been negatively affected by a decrease in demand, weak cost competitiveness and the overcapacity of sawn timber and further processed wood products in Europe. The aim of the plan is to improve the long-term cost competitiveness in the business areas of sawn timber and further processed wood products,” states Ilkka Ylipoti, senior vice president, UPM Timber.

The negotiations concerning the efficiency improvement of production will begin at Aureskoski and Lappeenranta, in Finland, and at Pestovo, in Russia. If the planned rationalisation measures are carried out, the number of employees will be reduced by, at most, 59 people.

The negotiations concerning the production curtailments of the first quarter of 2012 will be held at all the Finnish sawmills and further processing mills apart from the Heinola further processing mill. The length of the temporary lay-off periods caused by possible production curtailments will vary by unit, but they will not last longer than 90 days. The production curtailment negotiations concern 554 people in Finland.

Co-operation negotiations started at the end of October regarding adjustment of plywood production in Finland have been completed. Based on the negotiations, the company has decided to adjust production by lay-offs totalling no more than 90 days by the end of 2012 at Joensuu, Jyväskylä, Ristiina and Savonlinna plywood mills when needed.

“Timing and duration of the lay-offs will be decided mill-by-mill based on the market situation and they will, if executed, cover the mills’ personnel as a whole.  The mills’ power plants and the Savonlinna investment project are left outside the adjustment measures,” says Petri Parjanen, director of Human Resources, UPM Plywood.

About UPM:

UPM Living manufactures sustainable, beautiful and recyclable wood-based products for consumers and industry. Manufactured from certified wood raw materials, the products can be used to create top-quality interior decoration solutions or build a high-quality garden or house. The seven UPM Living production facilities are located in Finland (Aureskoski, Heinola,
Lappeenranta, Uusikaarlepyy, Pori), France (Aigrefeuille) and Russia (Pestovo). Annual production capacity is 420.000 m3 of wood products. UPM Living is partof the UPM Forest and Timber Business Area. 

UPM Timber manufactures top-class sawn pine and spruce timber for the construction and joinery industries. UPM Timber annually produces around 2.3 million cubic metres of timber from wood acquired from certified forests. UPM Plywood offers high-quality WISA plywood and veneer products mainly for construction and transport industries as well as the formable UPM Grada plywood for furniture and manufacturing industries. The sales of UPM Plywood in 2010
were EUR 347 million and it has about 2,500 employees. UPM has 6 plywood mills and a veneer mill in Finland, and plywood mills in Russia and Estonia.
 

Source: UPM