Business Strategies

Upm reduces manufacturing capacity

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The Finnish paper group Upm announced its intention to reduce its production of publishing paper of 675,000 tons after finalizing the negotiations to close three plants in Finland (in Kaukas and Jämsänkoski) and the United Kingdom (in Shotton) by the end of March 2015. The number of employees will be cut by 252 people in Finland and 121 people in the Shotton plant in the United Kingdom. The decision is part of a profit enhancement plan worth 150 million euros, which was approved in November 2014.

At the same time, Upm is carrying out negotiations with trade unions on job cuts in a paper mill of the group in the French town of Chapelle Derablay.

As the executive Vicepresident of Upm Paper for Europe and North America Bernd Eikens explains, «from a business point of view the measures adopted are needed to improve the operating result and the profits on the European market, which is currently suffering from an excess of capacity».