Employees are currently being consulted about the move which is expected to be concluded during the second quarter of 2006.

Tuomo Visanko, UPM senior vice-president, operations, said: “Regardless of the efforts made by the mill’s production personnel and sales, the mill’s high cost structure compared to the relatively low production capacity make it impossible to get the operations profitable.”

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Regardless of the efforts made by the mill’s production personnel and sales, the mill’s high cost structure compared to the relatively low production capacity make it impossible to get the operations profitable.

UPM said the Dinnington planing mill has a processing capacity of 35,000m3 of timber and employs 34 people. UPM has a plan to help those affected by the closure to find new employment.

The company said the closure costs will have only a minor affect on its operating profit.