UPM Plywood Announces Plan to Restructure its Organization and Scale its Operations

UPM Plywood on Thursday (4-27-23) announced plans to restructure its organization and scale its operations to meet the reduced production capacity and the deteriorating market situation. According to the press release, the company said it will begin employee negotiations involving 262 salaried employees and global functions in the sale office and in its Finnish mills. It is estimated that the maximum reduction will be 35 positions, with employee negotiations conducted in accordance with local legislation.

Over the past three years, UPM plywood has reduced its production capacity significantly. The company closed its unprofitable Jyväskylä mill in 2020 and sold the Chudovo mill in Russia this spring. In total, production capacity has declined by 255,000 cubic meters. The company says the cuts are the result of reduced demand for spruce plywood and veneer due to slowing construction activity. The outlook for birch plywood is also uncertain.

The press release also says that in connection with the organizational reform and adaptation of operations, UPM Plywood will develop its operating model to better support the company’s strategic focus areas and utilize the opportunities brought by digitalization.