New profit program launched by UPM
UPM is introducing a new profit improvement target with an annualised impact of EUR 150 million by the end of 2015.
“During the past 12 months we have been able to improve our financial performance through streamlining but also through better focus and significant decrease in variable costs. Our new business structure has shown that it is capable of delivering results and we have been able to identify further profit improvement potential in our businesses. This potential we aim to capture in 2015, ” says Jussi Pesonen, President and CEO of UPM.
“The European paper business is a case for itself. We have achieved a turnaround in profitability during 2014. Nevertheless, the current operating rates are unacceptably low and the current economic environment is not promising tailwind for 2015. We plan to adapt our production to meet the profitable customer demand. We also ensure savings without endangering customer deliveries in the structurally declining market”, says Pesonen.
UPM is planning to permanently reduce its publication paper capacity in Europe by further 800,000 tonnes approximately. The capacity reductions are planned to take place in France, Finland and in the UK.
UPM plans a permanent closure of:
newsprint machine 3 at UPM Chapelle in France
newsprint machine 1 at UPM Shotton in the UK
SC paper machine Jämsänkoski 5 at UPM Jämsä River Mills in Finland
coated mechanical paper machine 2 at UPM Kaukas in Finland.
In addition, the company plans to centralise UPM Paper ENA supply chain planning and order fulfillment activities to Augsburg and Dörpen in Germany.
If all the plans to close capacity would be implemented, UPM’s personnel at the mills would be reduced by approximately 550 persons by the end of 2015.