UPM has agreed to sell its Lohja veneer mill to the mill’s operative management for an undisclosed sum.
Under the agreement the mill’s 70 staff will work with the new company.
The mill – previously known by the name Mahogany – became part of UPM it was bought by when Rauma-Repola in 1980.
UPM said it had strived to maintain the mill’s competitiveness by developing and renewing its production but profitability weakened during the last decade.
“As the thin veneer market has gone through a radical change, manufacturing of special products has not offered the synergies UPM has sought,” said Pia Pasi, UPM plywood’s vice-president for the industrial business unit.
“I am pleased with finding a buyer to continue the operation of the mill. The Lohja thin veneer mill is one the most modern in the world. It has a good potential to operate profitably as an independent company.”
The mill’s production capacity is about 14,000m³ of sliced, staylog cut and rotary cut structural and face veneer.
The transaction is expected to be completed this month.
UPM currently has six plywood mills, two veneer mills in Finland, a plywood mill in Russia and a plywood mill in Estonia.
