UPM Plywood to cut up to 35 jobs

Finnish bio-forestry company UPM Plywood is planning to reduce up to 35 jobs following the reduction in its production capacity and the deteriorating market situation, said UPM in a press release on Thursday.

The company will begin employee negotiations involving 262 salaried employees in the staff and global functions, in the sales offices and in the Finnish mills.

Employee negotiations will be conducted in accordance with local legislation.

“In the new situation, it is extremely important to renew the company's operation model as well as to maintain cost competitiveness and prerequisites for long-term business performance”, said Mika Kekki, Executive Vice President of the UPM Plywood.

UPM Plywood’s has reduced its production capacity significantly during the past three years.

The company closed its unprofitable Jyväskylä mill in 2020 and sold the Chudovo mill in Russia this spring.

In total the production capacity has decreased 255.000 cubic meters.

The demand for spruce plywood and veneer has decreased due to slowing construction activity.

UPM has adjusted spruce plywood and veneer production to the reduced demand with layoffs throughout the current year. The outlook is uncertain also for birch plywood in panel trading.