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UPM Timber to Begin Staff Reduction Negotiations
Helsinki, Finland, 03 November 2010 – The UPM Timber business unit will begin negotiations on operational reorganization of its Finnish and Russian staff functions, production, and in sales units abroad. The negotiations also will cover production curtailments in Finland for the year 2011.

The planned measures on operations would affect 52 salaried employees in staff functions and production units in Finland and Russia and in sales units abroad. The planned measures aim to improve the cost competitiveness of the business and to adjust the number of personnel to the new business operating model.

The weakening market situation, availability of cost-competitive raw material, and poor business profitability also have brought on a need to negotiate production curtailments in Finland for 2011. The possible temporary lay offs resulting from production curtailments are to be carried out according to mill-specific plans.

The negotiations will commence in week 45 and last approximately six weeks. UPM will prepare for possible reductions by compiling a transition security plan that will support the rapid re-employment of employees.

UPM Timber produces sustainable and advanced timber products for construction. The annual production capacity is 2.3 million cubic meters of sawn timber and 420,000 cubic meters of further processed products. UPM Timber has 12 production units in Austria, Finland, France, and Russia and it employs approximately 1200 people. UPM Timber's Finnish mills are situated in Lappeenranta (Kaukas), Kajaani, Parkano (Aureskoski), Pietarsaari (Alholma), Korkeakoski, Heinola, and Pori (Seikku). UPM Timber employs approximately 800 people in Finland.

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