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UPM plans 500 layoffs in Finland

Forest industry giant UPM-Kymmene has announced plans to lay off 1,200 workers across Europe, including hundreds in Finland. The company aims to reduce magazine paper production capacity by 1.3 million tonnes per year in Europe.

Mies työskentelee Myllykosken paperitehtaalla.
UPM suunnittelee Kouvolan Myllykosken paperitehtaan sulkemista vuoden loppuun mennessä. Image: YLE

UPM's Myllykoski plant in Kouvola, eastern Finland, is slated for closure by the end of the year, and other cuts will be spread across Germany and France. Cutbacks also target UPM's units in Lahti and Pietarsaari.

In all, up to 650 workers in Finland now face redundancy, 375 of them at the Myllykoski factory, which was founded in 1892.

In Germany, the company’s Albbruck mill faces permanent closure, while the Ettringen mill will close one of its paper machines. The Stracel factory in France will be sold off -- if a buyer can be found. The Nordland fine paper mill in Germany will be closed temporarily.

UPM also plans to re-organise its sales, supply chains and other operations. The company estimates that the savings will total around 200 million euros a year.

Prime Minister Jyrki Katainen says that ministers are already working with UPM and local businesses to bring new jobs to the affected region.

Sources: YLE