UPM has confirmed it will close several Finnish mills and reduce capacity at others in a restructuring programme aimed at adjusting its wood production volumes to current and future market demands.
The company, which announced its final decision following negotiations with employees affected, said it had failed to find any financially viable options to the cuts.
The Aureskoski sawmill and Viiala plywood mill will close at the end of 2004, while the Kuopio facility will shut by the end of August next year. Alholma’s sawmilling operations will reduce by a third to 200,000m3 annually and Kajanni’s output will fall to 120,000m3.
Aureskoski’s further processing operations will continue virtually unchanged.
The company’s Finnish sawmill production will reduce overall by about 400,000m3, with birch plywood capacity falling by 70,000m3, though production at other plywood mills will ensure output remains at current levels for the time being.
UPM says at least 150 of the 672 workers affected will be re-allocated or retrained, with a further 200 accounted for by pension arrangements.
