UPM to permanently close down the paper machine 3 at UPM Ettringen and to restructure overlapping operations in Germany
UPM will permanently close down the paper machine 3 at UPM Ettringen paper mill on 14 December 2011 as being uncompetitive. In addition, overlapping operations are being restructured in the supply chain, paper sales and functions in the Ettringen, Plattling and Hürth mills. The negotiations concerning reconciliation of interest and social plan are concluded at the German units except Albbruck.
The aim of the changes is to improve the profitability and cost-efficiency of UPM's paper business in Europe and to adapt the company's paper production to the needs of its global customer base.
The restructuring measures will affect 54 people at UPM Ettringen, 17 people at UPM Plattling and 7 people at UPM Hürth. Personnel reductions will start in January 2012.
During the negotiations concerning reconciliation of interest and social plan, issues such as pension schemes, support for re-employment, relocations within the company, re-training and compensations payments were discussed and agreed.
“The restructuring measures are extremely unfortunate for the affected employees. However, it’s important to face the realities and to look ahead. UPM will support the affected employees in finding a new job,” says Jyrki Ovaska, President, Paper Business Group.