EMCC European Monitoring Centre on Change

UPM

Company/Organisation:
UPM

Geographic Location

Country: Finland
Region: Satakunta; Länsi-Suomi; Manner-Suomi
Location of affected unit(s): Rauma

Company

Sector: Manufacturing
Manufacture of wood and paper products, and printing
17.12 - Manufacture of paper and paperboard
Number Employed: 520

Employment Effects

Announcement Date: 10-09-2019
Planned Job Reductions min: 179
Planned Job Reductions max: 179
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2019
Direct Dismissals: 179

Additional Information

Timber, pulp and paper manufacturing company UPM announced the shutdown of one papermaking machines out of the three available at its production plant in Rauma. The decision is expected to lead to the dismissal of 179 employees (including 14 temporary ones), for which employer-employee negotiations have started. The company plans to turn the papermaking machine off by the end of 2019. The closure is part of a wider restructuring process in Europe with the aim to reach annual cost savings of €20 million.

According to management, the restructuring event is linked to the decrease in demand for uncoated paper in Europe. Moreover, a spokesperson for the company signalled concerns for talks about harvesting restrictions in the country and claims that Finland is far from the market with high transportation costs. On the contrary, employees criticized the announcement, as they claim that the remaining two papermaking machines are difficult to operate with a reduced workforce. For this reason, employees called for a 24-hour-long work stoppage.

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