Sawmill survives as paper feels the pinch

UPM-Kymmene has announced it is to continue operations at its Kajaani sawmill, although it is closing its Kajaani paper mill.

The paper mill, along with pulp manufacturing operations in Tervasaari, is to close by the end of the year, as the slowing economy and financial pressures force UPM to act. The closures will reduce UPM’s Finnish workforce by around 700.

The Kajaani sawmill has the capacity to produce 150,000m³ a year of pine sawn timber for the joinery and furniture industries, as well as for distribution.

UPM is to provide support for workers affected by the closures through a From Job to Job programme. This includes €1.5m for retraining and start-up support of €1m to encourage affected personnel to create new businesses.

From Job to Job will also include the sale of 150ha of land to the city of Valkeakoski for industrial and business use, creating jobs for those affected by the Tervasaari closure.