UPM has announced plans to cut up to 3,600 jobs by 2008, with most of the layoffs in Finland.
The company’s programme to improve efficiency will include closing several of its least competitive mills resulting in annual savings of around €200 million ($238 million). UPM also plans to invest in units that have the best prospects for profitable business.
The news came following a recent announcement by the paper manufacturer to sell various real estate holdings in Helsinki and transfer approximately 100 employees to more cost-efficient premises in the capital area by the end of 2006.
Meanwhile, Stora Enso has said that it intends to sell its Grycksbo fine paper mill and Linghed sawmill as part of the company’s asset performance review (APR). In statement, the company said that six mills are to be divested under the APR following assessment of their profit potential, strategic fit and realisable value. The review aims to secure a competitive European production base for the business.