UPM Closes Down Paper Machines in Finland and Germany

HELSINKI, FINLAND—April 8, 2013—UPM will permanently close down the paper machine 3 at UPM Rauma mill in Finland and the paper machine 4 at Ettringen mill in Germany by the end of the April 2013. The number of employees will be reduced by 87 in the UPM Rauma mill and by 150 in the UPM Ettringen mill.

The employee negotiations concerning the closing plans were concluded in March. UPM has also concluded the employee negotiations with the employee representatives concerning streamlining the Paper Business Group and global functions in Finland. Employee negotiations in global functions continue in several countries following local schedules and processes. The selling processes of UPM Docelles paper mill and UPM Aigrefeuille further prosessing mill in France continue.

In the Finnish employee negotiations the argumentation of personnel reductions, schedule and change support for the redundants were discussed.

"The employee reductions are inevitable under the circumstances," said Jyrki Ovaska, president of the UPM Paper Business Group. "UPM will support former employees through re-employment and retraining in many ways."

Employee reductions are a result of UPM’s need to permanently reduce paper capacity in Europe by a further 580,000 tonnes. Current business environment also makes evident the need for streamlining of the Paper Business Group and UPM’s global functions to remain cost-competitive in the new business scale. UPM announced its plans on January 17, 2013.

The continuing challenges in European economy have significantly impacted the consumption of paper, exacerbating the effect of structural changes in paper end-uses and resulting in further decline in the demand of graphic papers in Europe. High costs and significant overcapacity continue to challenge the industry operators in Europe.

UPM Rauma and PM 3
UPM Rauma paper mill manufacturers LWC and SC papers with annual capacity of 1,210,000 tonnes. PM 3’s annual production capacity is 245,000 tonnes of SC paper and it employs 90 persons. Located in Western Finland the mill employs 670 people. The mill was founded in 1969.

UPM Ettringen and PM 4
UPM Ettringen paper mill manufactures uncoated magazine papers. Its two production lines have a combined annual capacity of 460,000 tonnes. PM 4 has a capacity of 175,000 tonnes of SC papers annually and it employs 155 persons. Located in Bavaria, south Germany, the mill employs 391 people. The mill was founded in 1897.

About UPM
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange.

Source: UPM.