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UPM Reduces Staffing at Three Facilities

Helsinki, Finland, 23 January 2012 -- UPM has concluded co-operation negotiations that began in December to curtail its sawn timber and further processing production in Finland.

As a result of the negotiations UPM has decided to carry out the planned rationalization measures at Aureskoski and Lappeenranta, in Finland, and at Pestovo in Russia. The number of employees will be reduced by three at Aureskoski further processing mill, 11 at Kaukas sawmill in Lappeenranta, and 34 at Pestovo mills.

The production curtailments of the first quarter of 2012 concern all Finnish sawmills and further processing mills, apart from the Heinola further processing mill. The length of the temporary lay-off periods caused by production curtailments will vary by unit, but they will not last longer than 90 days.

UPM Timber manufactures top-class sawn pine and spruce timber for the construction and joinery industries. UPM Timber annually produces around 2.3 million cubic meters of timber from wood acquired from certified forests. UPM's seven sawmills are located in Finland, Austria, and Russia. In Finland, UPM operates five sawmills in Lappeenranta (Kaukas), Kajaani, Pietarsaari (Alholma), Korkeakoski and Pori (Seikku). UPM Timber is part of UPM’s Forest and Timber Business Area. www.upmtimber.com

UPM Living manufactures sustainable, beautiful, and recyclable wood-based products for consumers and industry. Manufactured from certified wood raw materials, the products can be used to create top-quality interior decoration solutions or build a high-quality garden or house. The seven UPM Living production facilities are located in Finland (Aureskoski, Heinola, Lappeenranta, Uusikaarlepyy, Pori), France (Aigrefeuille), and Russia (Pestovo). Annual production capacity is 420,000 m3 of wood products. UPM Living is part of UPM’s Forest and Timber Business Area. Additional information is available at www.upmliving.com.

UPM products are made of renewable raw materials and are recyclable. The company’s business is divided into three business areas: Energy and Pulp, Paper, and Engineered Materials. UPM employs around 24,500 people and has production facilities in 16 countries. The company’s annual turnover amounts to more than EUR 10 billion. UPM's shares are listed on the Helsinki Stock Exchange. Additional information is available at www.upm.fi.


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