UPM plans to cut label stock capacity, lay off 340
Wednesday, November 12, 2008
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HELSINKI, Finland — Paper company UPM-Kymmene Corp. said Wednesday it is planning to close several of its self-adhesive label production lines in Finland and elsewhere in Europe and ax some 340 jobs by end-2009.
The Finnish company said the measures were part of a restructuring scheme aimed at boosting profitability at its label division, a major European producer of self-adhesive label stock used in consumer products such as bottles and printing papers.
UPM, the world's largest magazine paper maker, said closure of label stock production lines would take place at its plants in Britain, France, Germany and Hungary along with Finland. The aim is to reduce operating costs at the unit by some euro25 million annually, UPM said in a release.
Last week, UPM said it will close two paper mills in Finland by year-end and cut 700 jobs on top of previously announced worldwide job cuts of some 1,600 planned for 2009 and 2010.
The Helsinki-based company has production plants in 14 countries and employs some 27,000 people worldwide.
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