PaperAge Magazine

UPM Seeks Efficiency Improvement in UPM Raflatac and in Global Functions


Oct. 6, 2020 (Press Release) - As a result of the weakening world economic outlook as well as the COVID-19 related restrictive measures and their consequences, the uncertainty in UPM's market environment continues. To ensure future competitiveness, UPM keeps taking action to decrease fixed and variable costs in its businesses and functions.

UPM's label materials business UPM Raflatac plans to simplify its organisation and increase efficiency in operations and distribution. If implemented, the plans would reduce approximately 100 positions in UPM Raflatac's global organisation, mainly in Europe.

In addition, UPM aims to increase efficiency of its global functions by reorganising and streamlining the functions' operations in five countries. If implemented, the plans would decrease the number of positions in the functions by up to 70, mostly in Finland and in Germany.

Employee consultations on efficiency improvements will be started according to national practices. Final decisions will be made after the employee consultation procedures have been concluded in each country. If implemented, the plans announced today are expected to result in annual savings of approximately 12 million euros.

UPM focuses on continuous improvement in cost efficiency. Recently, UPM announced plans for permanent closing of UPM Kaipola paper mill in Finland, sale of UPM Shotton paper mill in Wales and streamlining UPM Communication Papers' business function teams. In addition, UPM announced plans for reorganising and streamlining activities in Finnish pulp mills, UPM Forest and UPM Tervasaari mill in Finland.

Earlier this year, UPM completed the closures of UPM Chapelle paper mill in France and UPM Plywood Jyväskylä mill in Finland.

The company will continue to implement measures to decrease fixed and variable costs in all businesses and functions, as needed.

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. To learn more, please visit: