EMCC European Monitoring Centre on Change



Geographic Location

Country: World
Location of affected unit(s): Finland (Voikkaa, Kymi, Kaukaa, Kajaani, Tervasaari, Rauma, Pietarsaari, Kaipola, Jämsänkoski)


Sector: Manufacturing
Manufacture of wood and paper products, and printing
17 - Manufacture of paper and paper products

Employment Effects

Announcement Date: 09-03-2006
Planned Job Reductions min: 3600
Planned Job Reductions max: 3600
Type of Restructuring: Internal restructuring
Other Job Reduction Measures: 1500

Additional Information

The forestry company UPM will start a drastic restructuring programme, which will lead to the reduction of more than ten per cent of the group’s jobs. UPM is to cut nearly 3,600 jobs, of which nearly 3,000 are in Finland. The aim is to improve the company’s annual result by EUR 200 million. Due to production closures, nearly one thousand jobs will be lost at paper mills.UPM will close down the Voikkaa magazine paper mill and one coated fine paper machine at Kuusankoski and one pulp mill and one paper machine at Valkeakoski. The rest of the reductions will be trimmed evenly from all of the company's units and personnel group. About 1,500 employees are supposed to be moved to the "unemployement pension tube" or to retirement. The "unemployment pension tube / pipeline" indicates a situation in which ageing persons who have become unemployed can retain their eligibility for daily unemployment allowance until they reach the age when they are eligible for unemployment pension and the move on to old-age pension. With its reorganisation programme UPM will make economic history, because no Finnish company has let go that many of its workers in one fell swoop. UPM will cut down its personnel from all of its paper mills: Voikkaa, Kuusankoski (established in 1897) cut: 708 persons Kymi, Kuusankoski (est. in 1872) 450 Kaukaa, Lappeenranta 365 Kajaani 223 Tervasaari, Valkeakoski (est. in 1872) 219 Rauma 200 Pietarsaari 200 Kaipola, Jämsä 160 Jämsänkoski (established in 1888) 150