Friday, 02 December 2011 13:30

UPM is planning production curtailments and measures to improve efficiency

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UPM is planning production curtailments and measures to improve efficiency for timber and further processing businesses

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.

UPM Plywood adjusts the production when needed

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.

Read 2667 times Last modified on Friday, 02 December 2011 12:09