UPM has concluded negotiations with employees about far-reaching restructuring which involves the permanent closure of four mills.
“In negotiations with the employees, financial prerequisites could not be found to continue the operations at the plywood mills in Heinola and Kaukas in Lappeenranta, the sawmill in Heinola, and the further processing mill in Parkano,” UPM said in a statement.
The negotiations follow an earlier announcement last November which said the company was looking at closing the mills.
UPM will permanently close the mills during the first half of 2010 and prepare for temporary production curtailments at all its plywood and sawmills in Finland this year.
The changes mean the loss of 830 jobs, 650 of which are in the mills to be closed. UPM said the decisions were “regrettable”.
UPM will also seek to improve competitiveness in its plywood operations by discontinuing weekend shifts in most Finnish mills and streamlining office functions. Production will be restructured at its Kaukas further processing mill.
The group is also investing €25m in the Savonlinna birch plywood mill, the Kaukas sawmill and Aureskoski further processing mill in Parkano.
