UPM to take €30m sawmill hit

UPM-Kymmene will record a €30m impairment charge in the fixed assets of its Finnish sawmills during the third quarter as costs and a weakening market make life hard for sawmillers.

Rising raw material costs, weak demand and low sawn timber prices are damaging the profitability of sawmilling, the company said.

UPM has said it expects 2008 production figures at its Finnish sawmills to be about 20% lower than in 2007.