Packaging materials and special product companies to be combined into a single division

Archive 29.10.1998 0:00 EET

UPM-Kymmene has decided to combine its packaging materials division UPM Pack and its Special Product Companies into a single division starting its operations on January 1, 1999. The arrangement aims at streamlining and improving the efficiency of production and business operations.
The new division will be divided into four business areas: self-adhesives, barrier packaging, envelope papers and hygiene. In the self-adhesives and barrier packaging UPM-Kymmene is also a leading converter.
The business operations to be combined have a total turnover of over FIM 10 billion and 8,500 employees. Capital expenditure during the current year totals approx. FIM 700 million.
Already today both divisions have in common a paper sales network and paper machines with a combined annual production capacity of 700,000 tons. Also the converting companies are cooperating closely.
The purpose of combining these operations into a single division is to improve their cost-efficiency and strategic planning and to emphasise their special know-how. At the same time, this arrangement improves employee motivation and brightens the corporate image.
Mr. Berndt Brunow (48), President of the Special Product Companies, has been appointed President of the new division. Mr. Jaakko Rislakki (58) will retire, as earlier agreed, in the summer of the year 2000. Mr. Rislakki, President of the present Packaging Materials division, will continue in the new division in charge of the barrier packaging business area.
For more information, please contact:
Mr. Berndt Brunow, President, Special Product Companies, telephone +358 204 1 50015
Mr. Jaakko Rislakki, President, UPM Pack, telephone +358 204 1 63430