UPM receives a conditional offer for Aigrefeuille further processing mill and continues the Docelles mill sales process - UPM starts an employee information and consultation process in France

Investor news 18.7.2013 13:15 EEST

(UPM, Helsinki, 18 July 2013, at 13:15 EET) – UPM has proceeded on schedule published on 17 January 2013 to identify buyers for the Docelles paper mill and Aigrefeuille further processing mill in France.

UPM has received a conditional offer for the Aigrefeuille mill, but is still working with interested parties to develop a credible offer for the Docelles mill.                                                                                             

“According to the legal process, the Aigrefeuille conditional offer will now be submitted to employee information and consultation. We expect to finalize the process by mid-September”, says Anssi Klinga, Senior Vice President, UPM Timber.

“As for UPM Docelles mill, UPM has been conducting an active search for a buyer which could offer a credible future for the mill. Unfortunately the general economic climate in Europe is not favouring our process and it is very challenging to attract investors to new initiatives”, says Jyrki Ovaska, President of the UPM Paper Business Group.

UPM will continue the sales processes but at the same time the company will initiate an employee information and consultation process with the Central Workers’ Council of UPM France on two alternatives i.e. the sale or permanent closure of the two mills. The consultation process will also include streamlining measures in functions in France.

UPM continues to work closely with the stakeholders to find the best possible solutions for all sites and employees concerned.

The mills will continue production until the employee consultation has been concluded. Customer deliveries are not expected to be impacted.

The plan of sale or other exit of the UPM Docelles mill as well as the functional streamlining was originally announced on 17 January 2013. It is part of UPM’s plan to adjust its graphic paper capacity and support operations to match the declining demand in Europe.

UPM’s plan to sell the Aigrefeuille mill, also announced in 17 January 2013, follows the in 2012 renewed Timber business strategy. UPM focuses on the development of sawmills closely integrated with the company’s pulp and paper mills.

For further information please contact:
Jyrki Ovaska, President, Paper Business Group, UPM, tel. +358 204 150 564
Anssi Klinga, Senior Vice President, UPM Timber, UPM, tel. +358 50 466 1470
Jean Marc Louvet, Director, French Projects, UPM, tel. +33 6 0742 1115

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284

Earlier releases related to the subject:
17 January 2013, UPM plans to reduce 580,000 tonnes of graphic paper capacity in Europe
17 January 2013, UPM will start sales process to find a new owner for Aigrefeuille further processing mill

Notes to the editors

UPM Aigrefeuille further processing mill is located in Western France. The mill produces interior and exterior panels. The annual capacity of Aigrefeuille further processing mill is 45 000 m3 of wood products. The mill and related sales activities employ 38 people. UPM acquired the mill in 2000.

UPM Docelles paper mill manufactures uncoated fine paper with the annual capacity of 160,000 tonnes. Located in Eastern France the mill employs about 160 people. The mill was founded in 1478.

UPM Paper has 21 modern and sustainable paper mills in Finland, Germany, the United Kingdom, France, Austria, China, and the United States. As the world’s leading producer of graphic papers, UPM Paper provides customers with renewable high-performance products, and delivers more through efficient practises and continuous innovation. UPM Paper’s annual net sales amounted to EUR 7.2 billion in 2012 and the business group employs approximately 12,600 people. To learn more about UPM Paper, visit: www.upmpaper.com.

UPM Timber manufactures top-class sawn pine and spruce timber and further processed products for the construction and joinery industries. UPM Timber annually produces around 1.8 million cubic metres of timber from wood acquired from certified forests. UPM Timber’s production units are located in Finland, Austria and France. In Finland, UPM operates four sawmills in Lappeenranta (Kaukas), Pietarsaari (Alholma), Korkeakoski and Pori (Seikku). www.upmtimber.com

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people. UPM is present in 67 countries and has production units in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com