UPM to cut back Finnish operation

UPM-Kymmene has announced plans to curtail its sawmilling and plywood capacities in Finland in 2009, as markets remain soft.

The company has announced a decline in its third quarter results, with sales dropping from €2.47bn in 2007 to €2.36bn, operating profits down from €195m to a loss of €40m and pre-tax profits falling from €144m to a loss of €90m.

This trend has led UPM to announce production of sawn timber and processed timber products will be reduced at all of its Finnish mills, with negotiations with the 800 affected staff to start immediately.

It will also carry out a 90-day curtailment period at the Heinola plywood mill, as the birch plywood market weakens further.