UPM to restructure plywood and timber operations in Finland
Nov 3 2009 UPM plans significant restructuring of its plywood and timber operations in Finland. Almost 900 jobs will be cut, but this time not in UPM's pulp and paper operations.
UPM plans to permanently close the plywood mill and sawmill in Heinola, the Kaukas plywood mill in Lappeenranta - located in the Kaukas integrated mill site, where UPM also has its Kaukas pulp and paper mill - and the further processing mill in Parkano during the first half of 2010. The number of UPM employees is estimated to decrease by approximately 870 persons, of which approximately 650 work in units planned to be permanently closed and the rest in units which will be restructured.
The restructuring costs are estimated to be approximately 44 million Euros, including impairment charges of approximately eleven million.
In addition, UPM plans to invest approximately 25 million Euros in the expansion of the Savonlinna plywood mill and the development of the production in the Kaukas sawmill and the Aureskoski further processing mill.