UPM to Permanently Close PM 3 at Ettringen Paper Mill

Dec. 9, 2011 - UPM said that it will permanently close down the paper machine 3 at UPM Ettringen paper mill on December 14 as a result of it being "uncompetitive."

In addition, UPM said overlapping operations are being restructured in the supply chain, paper sales and functions in the Ettringen, Plattling and Hurth mills.

According to the company, the changes are being made to improve the profitability and cost-efficiency of UPM's paper business in Europe and to adapt the company's paper production to the needs of its global customer base.

The restructuring measures will affect 54 people at UPM Ettringen, 17 people at UPM Plattling and 7 people at UPM Hurth.

Personnel reductions will start in January 2012, UPM said.

During the negotiations concerning reconciliation of interest and social plan, issues such as pension schemes, support for re-employment, relocations within the company, re-training and compensations payments were discussed and agreed, UPM added.

ďThe restructuring measures are extremely unfortunate for the affected employees," said Jyrki Ovaska, President, Paper Business Group. "However, itís important to face the realities and to look ahead. UPM will support the affected employees in finding a new job.

SOURCE: UPM