UPM Fibres begins consultations on potential temporary layoffs

31 May 2023

Business

The raw material streams of the Kaukas pulp mill and sawmill (pictured) are closely linked. Image: UPM

UPM Fibres has started consultations with employee representatives at its Kaukas pulp mill, sawmill, and wood reception in Finland to prepare for “possible temporary production adjustment” to address the market situation.

As the raw material streams of the Kaukas pulp mill and sawmill are closely linked, the sawmill is also preparing to adjust production, according to a statement posted by the company on Monday (29 May).

“UPM Fibres prepares to temporary layoff personnel of the Kaukas pulp mill, sawmill and wood reception for a fixed term period. The possible temporary layoffs could take place in several periods and would last a maximum of 90 days,” the company stated.

It added the total number of employees covered by the employee consultations is approximately 370.

The temporary adjustment of pulp production and possible temporary layoffs could possibly take place in the second half of the year during the planned maintenance shutdown.

Decisions on possible temporary layoffs will be taken after the consultations have been concluded.

Earlier this month UPM lowered its outlook for 2023 due to a slower recovery of deliveries in most businesses and the rapid fall in pulp prices.

UPM has already had employee consultations on temporary layoffs in the UPM Communication Papers, UPM Specialty Papers, and UPM Plywood business areas earlier this year.

Earlier this month, fellow Finnish company Metsä Board was also set to initiate change negotiations on possible temporary layoffs for its paperboard and BCTMP (bleached chemi-thermomechanical pulp) mills in the country.