UPM to Make Changes to Business Structure, Reorganize Head Office

UPM Paper ENA's head office in Helsinki, Finland (pictured above) will be relocated to Augsburg.

Sept. 27, 2013 - Following the changes in UPM business structure announced on August 6 of this year, UPM Paper ENA (Europe & North America) and UPM Paper Asia Business Areas will adopt a new organization structure as of November 1, 2013.

The new UPM Paper ENA will consist of the following three strategic business units (SBU):

  • Magazine Publishing & Advertising
  • Merchants, Home & Office
  • Newspaper Publishing

UPM Paper Asia will consist of two strategic business units (SBU): Fine Papers APAC and Label Papers.

REORGANIZATION OF HEAD OFFICE

With respect to UPM's target to simplify its operating models and structures to address the competitive challenge in mature European business, UPM Paper ENA, which will be effective as of November 1, plans to reorganize its Head Office activities. The aim is to improve profitability by creating a leaner management structure. In the same connection, UPM Paper ENA's head office will be relocated from Helsinki to Augsburg with the aim to be present at the main markets and close to the customers.

The planned changes will have an impact to the whole UPM Paper ENA's way of working. According to the plan, the new organization would be smaller than the current one and have less organizational layers. The new leaner management structure will improve agility and speed up the decision making process. The management will also have a strong operational focus.

The employee consultation process in Finland will be started immediately covering the current head office staff of UPM Paper Business Group. This employee consultation process does not cover Tampere Supply Center nor the mill organizations. The number of positions affected by the planned changes is 75. If this plan is realized, the above mentioned changes would have an impact on maximum 45 positions in Finland.

“These planned measures are regrettable to our personnel, however, necessary due to the weak profitability development during the first half of the year. With the changes we hope to bring the UPM Paper ENA's profitability on the right track,” says Bernd Eikens, Executive Vice President, UPM Paper ENA.

The employee consultation process with personnel representatives are planned to start October 3, 2013 and last approximately 6 weeks. Decisions on organizational changes will be implemented as soon as possible, latest at the end of the consultation process.

Decisions on job reductions and support for impacted employees will be made when the consultation process has been completed.

SOURCE: UPM