Despite the fact that Finnish forestry giant UPM made slightly better results than last year at the beginning of this year and despite an extensive savings program, UPM closes now four paper machines to save 150 million euros in the year. This means that 550 jobs will disappear from the company.
UPM's paper producing capacity is increasing in the whole of Europe. According to UPM's new savings plan several paper machines in Jämsänkoski and Lappeenranta are closed. The paper factory at Lappeenranta employs 320 people.
In Jämsänkoski 110 jobs are threatened and at the Kaukas mill in Lappeenranta 116 seem to be lost.
The other two paper machines that are to be closed are in the United Kingdom and France.
The company's operating profit was EUR 176 million in the period april -June, compared with 146 million year 2013. Turnover decreased slightly from 2.5 billion to 2.4 billion.
UPM started an austerity program last year with the goal to save 200 million euros per year. During the summer the company reported that this saver scheme has had a faster impact than expected which would be proven by the interim results. According to UPM reached the company 94 percent of savings already in the second quarter.
It was especially, UPM says, the production of paper and plywood that went well. According to the company the second quarter was quite good, although the production of cellulose and adhesives gave worse results, partly as a result of the services peak. All of this has apparently not helped very much.
Source: UPM & Finnish Radio
