UPM announces mill closure

UPM will permanently cease production at the Myllykoski paper mill by the end of this year. UPM and its employees were unable to establish a way to meet the commercial requirements for continuation of operations at the Myllykoski mill during employee negotiations.  In addition, the company is cutting down its overlapping operations in paper sales, the supply chain and its functions in Finland.

The personnel reductions will affect 371 people at the Myllykoski paper mill and 21 people at Myllykoski Corporation and Myllykoski Sales Nordic. Personnel reductions will start in January 2012. 

During the negotiations, issues such as pension schemes, relocations within the company, re-training and ways to alleviate the effects of redundancies were discussed. UPM will implement a programme called "From Job to Job" to support its employees during the transition.

“The Myllykoski mill has been making a loss for several years despite numerous measures aimed at making the operations more efficient. The mill’s cost competitiveness is weak. The high costs of raw materials and energy have further increased total costs and permanently damaged the mill's opportunities to reach a profitable level,” states Jyrki Ovaska, President, Paper Business Group.

The declining economic situation has worsened the mill's situation this autumn.  Alternative, profitable uses for the mill inside UPM’s businesses have not been found.     

The aim of these cuts is to improve the profitability and cost-effectiveness of UPM's European paper business and adapt the company's paper production to the needs of its global customer base. 

“This is a heavy day for Myllykoski people. However, it’s important to face the realities and to look ahead. UPM will support re-employment and training of Myllykoski personnel," says Jyrki Ovaska.