The change negotiations specifically relate to its Fibres Finland businesses, which include UPM Pulp, UPM Forest and UPM Timber and are deemed necessary to safeguard profitability.

Around 1,600 employees are involved in the proposed changes.

“The planned measures include the possible reduction of 110 positions,” UPM stated.

The potential temporary layoffs would be at UPM Pulp in Finland and at UPM Timber, and would take place “according to the market situation” between 1 January and 30 June 2025.

Any temporary layoffs could be implemented in stages and would last for a maximum of 90 days in total.

UPM had previously announced temporary shutdowns at two pulp mills in Finland that came into effect last month.

At an investor briefing held in London in September, UPM said the overall group was “ready to accelerate its growth in the coming five years”.

Its plans include robust growth in renewable fibres, namely pulp; in advanced materials such as adhesive materials; in specialty papers and plywood; and in decarbonisation solutions, such as biochemicals, biofuels and CO2-free energy.

The UPM graphic papers business “continues to focus on strong cash flow generation”.

UPM, which was hit by long-running and damaging strike action in Finland in 2022, agreed new collective labour agreements with the Finnish Paper Workers’ Union over the summer.

The group had sales of €10.5bn (£8.8bn) last year and employed 16,600 people across 43 countries.

Its Fibres division had sales of just over €3bn. UPM’s huge new pulp mill in Uruguay, Paso de los Toros, came on-stream 18 months ago.

UPM’s share price slipped on the news and was down 3.07% at €29.39 this morning (8 October). (52-week high: €35.77, low: 227.92.)