UPM-Kymmene Corporation Stock Exchange Release 24 October 2013 at 10.30 EET
UPM unveiled its new business structure and launched a EUR 400 million performance improvement programme on 6 August 2013. The new structure, effective from 1 November 2013, will drive clear change in profitability through the following improvements: Clearer targets and action points for each business, increased transparency of company performance, simplified business portfolio and clearer visibility of the value of assets.
As part of this programme, on 27 August 2013, UPM announced plans to reorganise its Finance & Control operations and to outsource recurring transactional tasks to an external company by the end of the second quarter of 2014. The employee consultation process is now closed and decisions were made accordingly. The number of personnel will decrease by 150 positions, of which 92 are in Finland and the rest in China and other countries. UPM is currently conducting employee consultations with employee representatives in its Paper Europe and North America business area. This consultation was announced on 27 September 2013.
Today, UPM is continuing the programme by announcing further plans to improve performance. UPM is planning to adjust other Global Functions’ operations and cost structures to match the new business requirements and organisation. In addition, UPM plans to restructure UPM Wood Sourcing and Forestry activities to improve the competitiveness of UPM mill integrates.
The employee consultations with employee representatives in Finland start by employer´s initiative on 24 October, 2013. In other countries the process will start as soon as possible and will follow local practices and legislation.
Decisions on planned organisational changes, planned job reductions and plan for support to the impacted employees will be made when the consultation processes have been completed.
In total, the new plans announced today are estimated to impact a maximum of 230 positions, of which 150 in Finland and 80 in other countries.
For more information, please, contact: Riitta Savonlahti, Executive Vice President, Human Resources, tel. +358 20 4150048 Esa Retva, Senior Vice President, Wood Sourcing & Forestry, tel. +358 50 5145152
UPM-Kymmene Corporation Pirkko Harrela Executive Vice President Corporate Communications
UPM, Media Desk Mon–Fri from 9.00 to 16.00 EET tel. +358 40 588 3284 media@upm.com www.twitter.com/UPM_News
Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 22,000 people and our annual sales exceed € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com
