UPM : No More Paper Mill Closures
Image: Kalle Niskala / YLE
Forest industry giant UPM says it has no further plans to close down more of its paper mills in Finland. In an interview with the agricultural paper Maaseudun Tulevaisuus, CEO Jussi Pesonen says short-term shutdowns may be necessary during periods of poor market activity.
UPM has slashed over two million tonnes off its paper production capacity during the past seven years. Pesonen says the remaining capacity is extremely competitive but warns that overcapacity in the paper sector still prevails in Europe.
Pesonen says Finnish paper mills should strive for greater competitiveness. He points out that the country still operates 52 pulp, paper and board mills. In his view, a reduction in wood wholesaler income has resulted in a drop of domestic forest usage.
UPM hopes to use more raw timber for energy production.
YLE