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Manufacture of Paper Machines

UPM to slash nearly 900 jobs worldwide

Finnish forest products company UPM is looking to send home nearly 900 workers from paper production installations in three European countries and other parts of the globe. The firm cites reduced production of printing paper.

Metsäteollisuusyhtiö UPM:n tehdas talvella.
Metsäteollisuusyhtiö UPM:n tehdas. Image: Yle

The company plans to mothball its number three paper machine at its Rauma mill in south-west Finland. Retrenchment talks affecting 90 workers at the plant are to begin immediately.

UPM will also shutter one factory in Docelles, north-eastern, France and another paper machine in Ettringen, western Germany. Altogether the company will slash 860 jobs worldwide.

UPM hopes the plant closures and payroll cuts will generate annual fixed cost savings of 90 million euros. However the programme is expected to set the company back by 100 million euros in one-time cash costs.