Consumables

UPM TO STREAMLINE THE PRODUCTION AT KALSO AND LOHJA VENEER MILLS IN FINLAND

Monday 18. May 2009 - UPM has started up a new production line at its Kalso veneer mill in Kouvola, Finland.

The new line increases the production efficiency of the mill remarkably. In consequence of the increased efficiency the amount of the personnel needs to be decreased by approx. 65 persons. Due to the current market situation, the capacity of the new production line can not be fully used and the mill has to continue operating with reduced production.

UPM will start employee negotiations on personnel reduction and temporary lay-offs with the employees in production and maintenance at the Kalso veneer mill next week. During the negotiations, possibilities for redeployment of the personnel at the other mills of the company as well as retraining will be cleared up. The negotiations are estimated to be concluded in July.

The Kalso veneer mill employs around 190 people, of which some 165 work in production and maintenance. The annual production capacity of the mill is approx. 80,000 cubic meters rotary cut spruce veneers, used as reserve side veneers by parquet industry.

The employee negotiations started in March at UPM’s Lohja veneer mill have been concluded. As a result of the negotiations, UPM will reduce the mill’s personnel by 15 persons and continue the temporary lay-offs of the entire personnel. The reason for the personnel reductions and temporary lay-offs is the need to adjust production and order-handling resources to the weakened market situation and to increase the profitability of the thin veneer business.

The thin veneer business employs around 100 people in Lohja. At Lohja mill UPM produces birch and pine veneer mainly for European furniture industry. The annual production capacity is approx. 10,000 cubic metres of veneers.