HELSINKI (News release) -- UPM Plywood is planning to restructure its organization and scale its operations to meet the reduced production capacity and the deteriorating market situation. The company will begin employee negotiations involving 262 salaried employees in the staff and global functions, in the sales offices and in the Finnish mills.
It is estimated that the maximum reduction is 35 positions. Employee negotiations will be conducted in accordance with local legislation.
"In the new situation, it is extremely important to renew the company's operation model as well as to maintain cost competitiveness and prerequisites for long-term business performance", says Mika Kekki, Executive Vice President, UPM Plywood.
UPM Plywood's has reduced its production capacity significantly during the past three years. The company closed its unprofitable Jyväskylä mill in 2020 and sold the Chudovo mill in Russia this spring. In total the production capacity has decreased 255.000 cubic meters.
The demand for spruce plywood and veneer has decreased due to slowing construction activity. UPM has adjusted spruce plywood and veneer production to the reduced demand with layoffs throughout the current year. The outlook is uncertain also for birch plywood in panel trading.
In connection with the organizational reform and adaptation of operations, UPM Plywood will develop its operating model to better support the company's strategic focus areas, and utilize the opportunities brought by digitalization.