UPM concludes sawmill business restructuring plans
2 July 2012UPM is to sell its Kajanni sawmill and close the Aureskoski and Heinola further processing mills after concluding restructuring talks.
UPM will sell the Kajaani mill to Pölkky Oy, which will continue operations and take on all the mill personnel.
But the Aureskoski and Heinola further processing mills will be closed down by the end of 2012.
"We will renew our operations model in Finland," said Anssi Klinga, senior vice-president, UPM Timber.
"The new sawn timber and further processing operations model will be based on wood sourcing to our integrated mills."
Timber operations will continue at locations near UPM's pulp and paper mills in Pietarsaari (Alholma), Pori (Seikku), Juupajoki (Korkeakoski) and Lappeenranta (Kaukas).
"Kajaani sawmill will support our production concept based on good quality northern raw material and therefore enables us to improve our customer service in export and domestic markets", said Jouko Virranniemi, CEO, Pölkky Oy.
The Aureskoski and Heinola closures will result in 97 mill employees being made redundant.
