Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 30 August 2004, UPM started cooperation talks with employees at five wood products plants in Finland. There had been prolonged over-supply of sawn timber in the European market, and as a result the profitability of the sawmilling business had been declining for several years. The profitability of the plywood business had also been hit by large over-capacity in Finland and by high costs. UPM was seeking to adjust its wood products production to the present and future market and raw material situation. The proposed measures would cut the workforce by 750. On 28 October 2004, the negotiations with the employees have reached completion. Financially viable options were not found to the proposed closure of units and to the production cuts at Alholma and Kajaani sawmills. It was determined that further processing at Aureskoski could continue virtually unchanged; the Kuopio plywood mill will not be closed down before early autumn 2005; and the number of job reductions is slightly lower than anticipated. In addition, the Group will launch an extensive re-allocation and retraining programme. The measures concerning the job cuts will result in a workforce reduction of 672 in addition to the cutting of temporary contracts in the units concerned by the negotiations by the end of 2005.
Eurofound (2004), UPM, Internal restructuring in Finland, factsheet number 60510, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/60510.