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UPM Timber to Reduce Staffing and Curtail Production

Helsinki, Finland, 13 January 2011 – UPM’s Timber business has concluded its employee negotiations started in November 2010. As a result, UPM Timber has decided on reorganization of operations in its Finnish and Russian production units, staff functions, and in sales units abroad. Production curtailments in Finland also will continue in 2011, based on market demand.

Negotiations were started in November to reduce staffing by 52 salaried employees. The measures decided on affect 45 salaried employees in staff functions and production units in Finland and Russia and in sales units abroad. The 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 have also brought on a need to continue production curtailments in Finland during 2011. The possible temporary layoffs resulting from production curtailments are to be carried out according to mill-specific plans.

UPM has prepared for personnel reductions by compiling a transition security plan that will support the 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 employs approximately 800 people in Finland.


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