Helsinki, Finland 10 January 2013 -- UPM announces a production curtailment at its Pestovo sawmill in Russia, and begins negotiations with employees. The negotiations will affect all of the approximately 180 sawmill employees. Starting today, production at the mill will be curtailed to the level necessary to fulfil the on-going contracts. At the same time UPM announces a search for a buyer for the Pestovo mill production area for restructuring or reorientation of production.
The measures taken in Pestovo follow UPM’s renewed Timber business strategy announced in April 2012. UPM concentrates on the development of sawmills closely integrated with the company’s pulp and paper mills. Sawmills have a central role in UPM’s wood sourcing supply chain as their by-products are used in the production of pulp, paper and energy.
"The profitability of the sawmills and further processing units located furthest from our integrated mills has been weak for a long time, and Pestovo sawmill is no exception," says Anssi Klinga, Senior Vice President, UPM Timber.
UPM’s decision to curtail production and put the Pestovo sawmill on sale have no effect on current customer commitments or other valid contracts.
UPM Pestovo sawmill is located in the Novgorod region of Northwest Russia. Production in Pestovo started in 2004. The annual production capacity of the mill is 260,000 cubic meters of sawn timber and 40,000 cubic meters of planned goods. About 180 employees work at UPM Pestovo. www.upm.ru
UPM Timber manufactures top-class sawn pine and spruce timber and further processed products for the construction and joinery industries. UPM Timber annually produces around 2.1 million cubic metres of timber from wood acquired from certified forests. UPM Timber’s production units are located in Finland, Austria, France and Russia. In Finland, UPM operates four sawmills in Lappeenranta (Kaukas), Pietarsaari (Alholma), Korkeakoski and Pori (Seikku). www.upmtimber.com
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,000 people and it has production plants in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com