UPM's integration plan hangs on EU

UPM-Kymmene plans to integrate its paper industry business areas into one division, which will start operating if its acquisition of Haindl Paper is approved by the EU competition authorities

UPM-Kymmene plans to integrate its paper industry business areas into one division, which will start operating if its acquisition of Haindl Paper is approved by the EU competition authorities (PrintWeek, 1 June).

Juha Niemel, who will continue as president and chief executive of the company, said the move would enable it to go forward with its plans.

He said the integration of the paper and pulp business areas and the appointment of a chief operating officer to head the division would give him more time to concentrate on running the company.

A spokeswoman for UPM-Kymmene said a decision on the Haindl acquisition was at the second stage with the EU authorities.

The European Commission has already said that there has been "fierce opposition" to the merger following initial feedback from competitors and buyers (PrintWeek, 17 August). The final decision is expected on 29 November.

The new, integrated division will consist of newsprint, magazine, fine and speciality papers and pulp. It will be headed by Jussi Pesonen, who will become chief operating officer for the paper division.

Pesonen was formerly vice-president of the newsprint product group within publication papers. He will also become executive vice-president of UPM-Kymmene.

The group expects to issue a detailed outline of its plans once the EU decision has been announced.

Story by Andy Scott