Location of affected unit(s)
Canada, Finland, Australia
Manufacture Of Wood And Paper Materials
Manufacture Of Wood And Of Products Of Wood And Cork, Except Furniture; Manufacture Of Articles Of Straw And Plaiting Materials
16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

680 jobs
Number of planned job losses
Job loss
Announcement Date
17 December 2007
Employment effect (start)
Foreseen end date
31 December 2008


UPM, a Finnish forest products manufacturer, has announced that it is to close a paper mill in Canada with the loss of 540 jobs by the end of 2008. The company has also announced the temporary closure of a paper manufacturing line in Kajaani (Finland) for ten months affecting 110 people who will be off work for ten months without pay.

In addition to the pulp and paper industry, UPM is rationalising operations in its wood products and adhesive paper production. The measures are leading to the loss of 680 jobs; 540 in Canada, and a total of 120 in Finland and 20 in Australia. The affected reduction units in Finland are Tampere, Jämsänkoski and Valkeakoski. The company hopes to achieve savings of EUR 50-70 million a year through the cutbacks.

The cutbacks stem from prevailing global excess capacity in paper production. The closure of the Miramichi mill in Canada, which has been constantly making losses since UPM bought it in 2000, will permanently remove excess capacity of magazine paper, and the cutbacks in Kajaani will temporarily ease the surplus of newsprint. UPM hopes that the moves will boost the price of the various grades of paper.

UPM is currently negotiating on next year's terms for supplying newsprint. According to the management, the Kajaani newsprint production line will restart once negotiations and the shutdown are over.


  • 18 December 2007: Helsingin Sanomat


Eurofound (2007), UPM, Closure in World, factsheet number 66128, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/66128.