Further details on UPM mill closures include the possible end of production at Kajaani sawmill and the Heinola and Aureskoski further processing plants by the end of 2012.
In a statement on Wednesday, UPM gave further details of cuts earlier outlined last December. The proposed closures centre on those mills located furthest away from its integrated pulp/timber facilities.
UPM will begin co-determination negotiations with the employees in Kajaani, Aureskoski and Heinola during April-May. Some 275 employees are included in the negotiations.
Selling the mills is an alternative option to closure.
“Our plan is to continue sawmilling and further processing in Finland in four locations, Pietarsaari (Alholma), Pori (Seikku), Juupajoki (Korkeakoski) and Lappeenranta (Kaukas), which are close to our pulp and paper mills using big volumes of wood,” said president of UPM’s energy and pulp business group Heikki Vappula.
??He said the profitability of the mills affected had been weak for a long time and restructuring measures had failed to to turn them around. High log prices and over capacity in the end-product markets had also weakened the situation.
Other measures include assessing the operational preconditions and role of the Pestovo sawmill and planing mill in Russia by the end of 2012.??
The Aigrefeuille further processing plant in France and the Steyrermühl sawmill in Austria will continue their operations as before and are excluded from the above mentioned plan. ??
“The plans have no effect on UPM’s current customer commitments or other valid contracts,” the group said.??
