UPM to Close Down Keuruu Veneer Mill

Helsinki, Finland, 17 October 2007 -– The co-determination negotiations at UPM Keuruu Veneer Mill have concluded. The purpose of the negotiations was to clarify options for continuing the operations of the mill in a situation where the availability of logs for veneer is decreasing and the profitability of the veneer business needs to be improved.

Based on the negotiations, UPM has decided to concentrate the manufacture of birch veneer at Lohja veneer mill and to discontinue the production of thin veneer plywood altogether. The operations at Keuruu veneer mill will cease in spring 2008. The mill’s machinery and equipment will be used in development of the production at UPM’s other mills.

The Keuruu mill personnel, some 70 people, have the opportunity to transfer to the company’s other plywood and veneer mills. UPM is supporting relocation to its other mills through a settling-in allowance and by compensating for direct moving expenses.