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UPM to start "From job to job" programme in Kajaani and Valkeakoski in Finland

Nov. 6, 2008 (Press Release) - UPM has today announced that it will close down Kajaani paper mill and Tervasaari pulp mill in Finland by the end of the year. In order to alleviate the impacts of redundancy UPM will start a "From Job to Job" programme in both locations. The programme includes, in cooperation with authorities and partner companies, active measures to support finding a new job and retraining.

UPM will support re-employment training of employees who have been given notice. UPM has reserved EUR 1.5 million to support the participation and material costs for retraining at a rate of up to EUR 5,000 per person.

In addition, UPM will encourage affected personnel to create new businesses by offering start-up support. The company has booked EUR 1 million for this purpose. UPM's start-up support can be applied until the end of 2010. Maximum support for business is EUR 20,000.

In order to relieve the situation in Kajaani where the mill will be closed, UPM will extend the re-employment obligation for local employees from 9 months, obligated by law, to 15 months. UPM is committed to inform employees given notice about the company's vacancies to their home addresses and employment authorities at all the company's mill locations 9 months beyond the above mentioned time period.

For employees moving to new UPM location, the company will cover relocation costs and a settling-in allowance equal to one month's remuneration.

Retiring employees and employees given notice have the right to use the company's occupational health services for one year after the end of work relationship. Unfinished treatments will be completed.

In Kajaani, local employment authorities have had an office at the mill facility since September. In Valkeakoski, the employment authorities will open an office at the mill according to local needs.

UPM looks for new businesses in Kajaani and Tervasaari mills

UPM will form a business park at the Kajaani mill premises utilising the experience gained at Voikkaa. Negotiations on establishing new companies at the mill site are ongoing. The first letter of intent has been signed with the Protacon Group which is a technology planning and service company. The estimated number of employees to be employed is 10-20 persons.

Furthermore, UPM is cooperating on recruitment with the mining company Talvivaara and the machine manufacturer Normet among others.

A feasibility study on pellets production based on forest residues in Kajaani continues. In addition, studies on the possibility to produce bio oil in Kajaani are ongoing.

UPM is negotiating on the establishment of new companies also at the Tervasaari mill site. The hall of the sack paper machine closed last year will soon be cleared and negotiations on the reuse of the premises are ongoing. UPM has received enquiries regarding also other Tervasaari mill premises. These proposals are being investigated.

Cooperation between UPM, cities of Kajaani and Valkeakoski as well as local employment authorities has been excellent.

UPM and the Finnish Ministry of Employment and the Economy plan to create opportunities for new business. In Kajaani, UPM has reserved EUR 200,000 and in Valkeakoski EUR 100,000 for this purpose.

The management of the region's structural changes in Kajaani region was started immediately on the initiative of the Ministry of Employment and the Economy. Under the management of joint authority of Kainuu region, a local working group was founded to handle the changes. The members of the working group are the region's Employment and Economic Development Centre, the city of Kajaani, the entrepreneurs of Kainuu region, the mining company Talvivaara, Kainuu Regional Development and Business Promotion Company Kainuun Etu, a government based financing company Finnvera, UPM as well as the local employment authorities.

SOURCE: UPM




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