UPM announces further restructuring
By Pamela Mardle Thursday, 05 July 2012
UPM has sold its Kajaani sawmill to wood processing company Pölkky Oy in Finland.
All staff at the Kajaani mill will become permanent employees of new owner Pölkky Oy, which will take over sawn timber production at the mill.
UPM senior vice president of timber Anssi Klinga said: "The new sawn timber and further processing operations model will be based on wood sourcing to our mill integrates. We will continue our timber operations according to the new operations model at locations near our pulp and paper mills in Pietarsaari, Pori, Juupajoki, and Lappeenranta.
"As a significant producer in Northern Finland, Pölkky Oy will be a good successor to continue sawn timber production at Kajanni."
Pölkky Oy CEO Jouko Virraniemi added: "The Kajaani sawmill will support our production concept based on good quality northern raw materials and enable us to improve our customer service in export and domestic markets."
Further restructures within UPM include the announcement that production will cease at its Aureskoski and Heinola mills by the end of 2012. The closure of the two mills will result in 97 employees losing their jobs, which UPM said it would support with its work-to-work programme aimed at fast re-employment.
UPM’s sales and management staff at its Lahti timber business will relocate to Tampere and other mill locations within Finland. In total, 42 jobs will be lost across due to the relocation.
The latest announcements follow a number of restructures made by UPM since the beginning of the year. Its newly-acquired Myllykoski unit was closed in the run up to the sale of its housing mill, Papierfabrik Albbruck in May.
At the same time, UPM sold its packaging paper machines at its Pietarsaari and Tervasaari to Swedish paper company Billerud. As a result, it is expected that UPM’s packaging division, which produces 300,000 tonnes of paper annually, will close in the second quarter of 2012.
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