Employee negotiations concluded in Finland and the UK - UPM closes 675,000 tonnes of publication paper capacity

​UPM-Kymmene Corporation   Stock exchange release      20 January 2015 at 9:30 EET

UPM permanently closes down paper machine 2 at UPM Kaukas and paper machine 5 at UPM Jämsänkoski in Finland, along with paper machine 1 at the UPM Shotton mill in the UK. Production will be ceased by the end of March 2015 at the latest. Employee consultation processes concerning the closing plans were concluded in mid-January 2015.

The employee consultation process concerning the planned closure of the paper machine 3 at UPM Chapelle in France, also announced in November, is proceeding.

The number of positions is reduced by 114 at the Kaukas mill in Lappeenranta, by 138 at the Jämsä River Mills and by 121 at Shotton. The consultations covered among others reasoning for personnel reductions, schedule and change support for those made redundant. All of the mills will continue paper production on the remaining paper machines.

Along with the closures, UPM reduces its coated and uncoated magazine paper capacity by approximately 460,000 tonnes and its newsprint capacity by 215,000 tonnes.

As planned, the company also continues centralising its Supply Chain operations in Paper ENA (Europe and North America) and transfers Supply Chain planning and order fulfillment activities from Tampere in Finland and Altrincham in the UK to Augsburg and Dörpen in Germany. Customer service continues in the current locations. The change concerns 48 positions in Tampere Supply Chain Centre and 11 positions in Altrincham. The company supports Supply Chain employees transferring to Germany.

“These decisions are unfortunate for the personnel involved, and the past months have been challenging for all of us. From the business point of view, the measures taken are necessary to improve our operating rates and profitability in the European paper business, which still suffers from overcapacity. By reducing capacity we ensure the efficient use of our remaining machines in Europe,” says Bernd Eikens, Executive Vice President, UPM Paper ENA.

The announced decisions are part of UPM’s EUR 150 million profit improvement target introduced in November 2014. The full profit improvement programme includes variable and fixed cost savings in all UPM businesses and functions.
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For further information please contact:

Bernd Eikens, Executive Vice President, UPM Paper ENA, best availability from 11:00-12:30 CET and 14:30-15:30 CET, tel. +49 160 707 3940

For local information, please contact:

Mills:

Antti Hermonen, Operations Director, UPM Kaukas paper mill, UPM Paper ENA, best availability from 10:00-11:00 CET, tel. +358 4002 80839
Markku Taavitsainen, General Manager, UPM Jämsä River Mills, UPM Paper ENA, best availability from 10:00-11:00 CET, tel. +358 40 5039 924
David Ingham, General Manager, UPM Shotton, UPM Paper ENA, best availability from 10:30-11:30 and 14:00-15:00 CET, Tel. +44 1244 2844 07

Supply Chain, Tampere and Altrincham:

Janne Ussa, Vice President, Supply Chain, UPM Paper ENA, best availability from 12:00-14:00 CET, Tel. + 358 40 7274 587

Previous press release:

UPM introduces a new profit improvement target of EUR 150 million – UPM Paper ENA plans to reduce 800,000 tonnes of publication paper capacity in 2015


Note to the editors

UPM Kaukas
UPM Kaukas paper mill manufactures coated magazine papers (LWC and MWC) with an annual capacity of 560,000 tonnes. Located in South East Finland the mill employs about 320 people. The paper mill is a part of the Kaukas mill integrate which employs about 1,200 people.

UPM Jämsä River Mills
UPM Jämsä River Mills manufacture uncoated magazine papers (SC), label and packaging papers in the Jämsänkoski unit and coated magazine papers (LWC), directory paper (MFS) and newsprint in the Kaipola unit with a combined annual capacity of 1,600,000 tonnes. Located in Central Finland, the mills employ about 1,000 people.

UPM Shotton
UPM Shotton Paper manufactures standard newsprint with an annual capacity of 490,000 tonnes. Located in North Wales, United Kingdom, the mill employs about 370 people.

UPM Paper ENA in brief
UPM Paper ENA (Europe & North America) is the world’s leading producer of graphic papers, serving customers in Magazine Publishing & Advertising, Merchants, Home & Office, and Newspaper Publishing. A leader in sustainable and high performance papers, UPM Paper ENA’s production is located in Finland, Germany, the United Kingdom, France, Austria, and the United States. With headquarters in Germany, UPM Paper ENA employs approximately 10,000 people. To learn more about UPM Paper ENA, visit: www.upmpaper.com

UPM in brief
Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 21,000 people and its annual sales are approximately € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com

UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

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