UPM Slashing Jobs In Plywood and Timber
Image: YLE
UPM-Kymmene said on Tuesday it would slash some 870 jobs in Finland due to weakness in the plywood and timber markets. Cutbacks will be seen at Heinola, Lappeenranta and Parkano. About 650 people are employed at units that are slated to be permanently closed.
UPM is considering shutting down its entire sawmill and plywood factory in Heinola, as well as its plywood factory in Lappeenranta and another plant in Parkano during the first half of 2010, and cut jobs in other Finnish mills.
In addition to the closures, weekend shifts will be abolished in many sites across the country.
UPM's plywood business employs currently 2,450 persons in Finland and its timber operations employ around 900 persons.
The company says co-operation negotiations with employees concerning the plans will start immediately. It also announced that its timber business will also start talks with employees in all the other Finnish units on continuing temporary production curtailments in 2010.
"With the proposed actions UPM will adjust its Finnish production to a level which facilitates profitable production and competitive wood sourcing," Tuomo Visanko, Senior Vice President of UPM's Forest and Timber Business Area, was quoted as saying in a release on Tuesday.
The Heinola plywood mill has been at a standstill since January and the Kaukas plywood mill at Lapeenranta since May this year. The employees of both of the mills have been temporarily laid off during the standstills. The Kaukas plywood mill employs 298 persons and the Heinola plywood mill 212 persons.
UPM said it will be investing 25 million euros to revamp production at selected Finnish mills, including Savonlinna. The company says it is aiming at increased competitiveness and making its Savonlinna plant the world's most efficient birch plywood mill.
Following closures and restructuring, UMP will have four plywood mills, two veneer mills, five sawmills and three processing plants in Finland.
YLE, Reuters, UPM-Kymmene