UPM Plywood to restructure, scale operations to meet reduced production capacity, deteriorating markets; company has adjusted spruce plywood and veneer production with layoffs throughout current year, says outlook also uncertain for birch plywood

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HELSINKI , April 27, 2023 (press release) –

UPM Plywood is planning to restructure its organization and scale its operations to meet the reduced production capacity and the deteriorating market situation. The company will begin employee negotiations involving 262 salaried employees in the staff and global functions, in the sales offices and in the Finnish mills.

It is estimated that the maximum reduction is 35 positions. Employee negotiations will be conducted in accordance with local legislation.

“In the new situation, it is extremely important to renew the company's operation model as well as to maintain cost competitiveness and prerequisites for long-term business performance”, says Mika Kekki, Executive Vice President, UPM Plywood.

UPM Plywood’s has reduced its production capacity significantly during the past three years. The company closed its unprofitable Jyväskylä mill in 2020 and sold the Chudovo mill in Russia this spring. In total the production capacity has decreased 255.000 cubic meters.

The demand for spruce plywood and veneer has decreased due to slowing construction activity. UPM has adjusted spruce plywood and veneer production to the reduced demand with layoffs throughout the current year. The outlook is uncertain also for birch plywood in panel trading.

In connection with the organizational reform and adaptation of operations, UPM Plywood will develop its operating model to better support the company's strategic focus areas, and utilize the opportunities brought by digitalization.

For further information please contact:
Mika Kekki, Executive Vice President, UPM Plywood, tel. +358 40 5455 803

UPM, Media Relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM Plywood offers high-quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. In 2022 UPM Plywood sales was EUR 539 million and it had around 1,800 employees. – www.wisaplywood.com

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UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility, we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 17,200 people worldwide and our annual sales are approximately EUR 11.7 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com

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