UPM has issued a profits warning and will start negotiations for the possible closure of its Leivonmäki sawmill.
The company said results for its sawn timber business in the second quarter would be weaker than forecast, with full year profitability outlook expected to further weaken markedly.
“The Leivonmäki sawmill has generated constant losses,” a UPM statement said. “The continued strongly weakening market situation and the uncertainty related to raw material supply have further complicated the situation.”
UPM has already curtailed production at all its seven sawmills in Finland in reponse to the weaker markets.
Leivonmäki, located in central Finland, produces spruce sawn timber with an annual capacity of 80,000m³.
Total annual capacity of the UPM Group is 2.2 million m³ from 15 mills in Finland, Austria, France and Russia.
