UPM Sells Further Processing Operations at Kaukas Sawmill to Lännen Painepuu

Lännen Painepuu will transfer the production machinery away from Kaukas sawmill by the end of this year.

Aug. 15, 2013 - UPM yesterday signed an agreement on the sale of further processing operations at Kaukas sawmill in Lappeenranta, Finland, to Lännen Painepuu Oy, part of Kuusisto Group. The 11 employees of the further processing mill will continue working at UPM Kaukas sawmill with the current terms.

The parties have agreed not to disclose the sales price.

The production of planed and pressure impregnated wood products at Kaukas will end along the sale. Lännen Painepuu will transfer the production machinery away from Kaukas further processing mill by the end of this year.

"UPM Timber has strong focus on sawn timber manufacturing. By the sale of further processing operations we are able to concentrate our resources on serving sawn timber customers," says Mikko Hyvärinen, Director, Sales and SCM, UPM Timber.

Pekka Kuusisto, Chairman of the board, Kuusisto Group, noted, "This acquisition confirms Lännen Painepuu’s position as the leading producer of pressure treated wood products in Finland. In addition our product range will be complemented by the well-known Kuohu decking board and Silmu pergola."

The sale of Kaukas further processing operations follows UPM’s renewed Timber business strategy announced in April 2012. UPM focuses on the development of sawmills closely integrated with the company’s pulp and paper mills.

SOURCE: UPM