UPM-Kymmene has announced the closure of its Leivonmäki sawmill, after concluding discussions with the workforce over the future of the site.
The sawmill had been operating at a loss “for a long time” said UPM, and the decision has now been made to terminate its operations. It will cease production before the end of the year.
UPM added weakening market demand for sawn timber, wood supply issues and the higher cost of wood had hindered the Leivonmäki operations.
UPM had been in discussion with the 60-strong staff about continuing production, but is now “actively seeking the possibilities to relocate the mill personnel to other UPM mills.
The 48-year-old sawmill produces 80,000m³ of spruce logs annually.