UPM Fibres launched consultations with employee representatives concerning potential temporary layoffs on 29 May.
UPM Fibres is preparing to temporarily adjust production at its facility in Kaukas, Finland. The company launched consultations with employee representatives concerning potential temporary layoffs on 29 May. As the raw material streams of the Kaukas pulp mill and sawmill are closely linked, the sawmill and wood reception also prepare for production adjustments, UPM announced.
Negotiations are underway for temporary layoffs of a maximum of 90 days, which could take place in several instalments and affect about 370 employees at the Kausas facility.
Temporary adjustment of pulp production and possible temporary layoffs could take place in the second half of the year during the planned maintenance shutdown, according to UPM. Decisions on temporary layoffs will be taken after the consultations have been concluded.
UPM's integrated Kaukas mill is located on the shore of Lake Saimaa in Lappeenranta in south-eastern Finland and has approximately 1,200 employees. The facility comprises a sawmill, a pulp mill, a biorefinery for bio-diesel, a magazine paper mill and UPM's research centre. The pulp mill has a capacity to produce 700,000 tpy of softwood pulp.
Previously UPM announced that it lowered its outlook for 2023 due to slower recovery in deliveries in most businesses and the rapid fall in pulp prices. Earlier in 2023 the company's business areas UPM Communication Papers, UPM Specialty Papers and UPM Plywood held employee consultations on temporary layoffs.
