Negotiations with hundreds of UPM staff are starting concerning planned production curtailments at all its sawmills and further processing facilities in the first quarter of 2012.
The group is also planning separate measures to improve production efficiency at the Aureskoski and Lappeenranta mills in Finland, plus Pestovo in Russia.
Negotiations on curtailments will be held at all Finnish sawmills and further processing facilities, except the Heinola mill.
“The length of the temporary lay-off periods caused by possible production curtailments will vary by unit, but they will not last longer than 90 days,” the company said.
Curtailment negotiations affect 554 staff.
UPM Timber senior vice president Ilkka Ylipoti said business had been negatively affected by a dip in demand, weak cost competitiveness and European overcapacity in sawn timber and further processed wood products.
Meanwhile, negotiations regarding adjustment of UPM’s plywood production have now been completed, resulting in lay-offs totalling no more than 90 days by the end of 2012 at Joensuu, Jyvaskyla, Ristiina and Savonlinna plywood mills when needed.
“Timing and duration of the lay-offs will be decided mill-by-mill based on the market situation and they will, if executed, cover the mills’ personnel as a whole,” said UPM Plywood.
