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.
Finnish paper manufacturer UPM is to cut 685 jobs. It has decided to shut down its Kajaani paper factory, employing 535 staff. Also to be shut down is the old Tervasaari pulp mill in Valkeakoski which employs 150 workers. Pesonen said at his press conference that he gave his “full recognition” to the efforts of the workers in Kajaani. However, the efforts were not enough, as the factory has been operating at a loss. The factory’s main product is newsprint, which is too expensive to manufacture in Kainuu. The raw material for the paper is fresh spruce fibre, whereas the company’s main competitors use cheaper recycled paper as raw material. The forest industry is facing difficulties due to the high price of raw timber which is forcing it to make hard decisions. Within a short time, UPM’s’ raw material costs have risen by EUR 400 million. In Finland, UPM plans to increase its purchases from domestic forests but only at a competitive price. The company does not intend to pay as much for Finnish wood as for imported raw material. “I believe that Finnish forest owners are ready to sell wood onto the market. UPM will certainly buy all of the wood, if it is economically feasible”, said CEO Jussi Pesonen.
Eurofound (2008), UPM, Closure in Finland, factsheet number 67122, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/67122.