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UPM divests its Kajaani mill to Pölkky Oy

Published by
Simon Matthis - 02 Jul 2012

UPM has concluded co-determination negotiations and decided to restructure its sawn timber and further processing operations in Finland and renews its business strategy. UPM has made a contract to sell its Kajaani sawmill to Pölkky Oy. Pölkky will continue sawn timber operations in Kajaani and all UPM sawmill personnel in Kajaani will continue working for Pölkky as permanent employees. UPM’s Aureskoski and Heinola further processing mills will be closed down by the end of 2012.

”We will renew our operations model in Finland. The new sawn timber and further processing operations model will be based on wood sourcing to our mill integrates. We will continue our timber operations according to the new operations model at locations near our pulp and paper mills in Pietarsaari (Alholma), Pori (Seikku), Juupajoki (Korkeakoski) and Lappeenranta (Kaukas). As a significant producer in Northern Finland, Pölkky will be a good successor to continue sawn timber production in Kajaani”, says Anssi Klinga, Senior Vice President, UPM Timber.

”Kajaani sawmill will support well our production concept based on good quality northern raw material and therefore enables us to improve our customer service in export and domestic markets”, says Jouko Virranniemi, CEO, Pölkky Oy.

UPM has also decided to end production at its Aureskoski and Heinola further processing mills and restructure its Timber head office functions. Aureskoski and Heinola mills will be closed down by the end of 2012 which will result in permanent layoffs of 97 mill employees. UPM will initiate its Work to work –program which aims at fast re-employment.

UPM’s Timber business will relocate its common sales and management staff functions from Lahti to Tampere and to mill locations in Finland. The number of staff function jobs will be reduced by 42 in Finland. UPM supports the relocation and re-employment with specific support measures.

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