UPM has reported slightly improved third-quarter profits of €140m but profitability in its sawmilling division is still “weak” .
The figure is €7m higher than the corresponding period last year, while sales were down to €2.44bn from €2.49bn.
The wood products division recorded operating profits of €109m, but €110m of this represents a one-off gain from the sale of the Ireland-based Brooks Group. Sales were down to €354m from €381m a year ago.
UPM said profitability of its sawmilling business weakened further due to oversupply and high raw material costs. Plywood prices and profitability strengthened.
The company is restructuring the division, including its Miramichi mill in Canada, to adjust production to the present and future market situation.
The agreement, subject to official Russian approval, includes logistics company ZAO ARS in St Petersburg.
Aranna has a long-established operation of procuring timber from Russia to Finland.