26 Apr 2025
,Italy
UPM Plywood has announced that it will enter into restructuring negotiations concerning the company's three plywood mills in Finland: the Pellos, Savonlinna and Joensuu mills. This decision follows long-standing profitability challenges in softwood plywood production, which the company sees a need to introduce efficiency measures to address.
The Pellos mill is specifically targeted in these change negotiations. Significant changes are planned at the plant, including possible job reductions and outsourcing of operations. These measures are motivated by production, economic and operational restructuring reasons. Up to 42 jobs may have to be cut at the plant, which would be a significant blow to employment in the region.
A total of around 1 000 workers employed at the three plants mentioned above are affected by the redundancy negotiations. This raises concerns not only among workers but also in local communities that rely heavily on the jobs and economic impact of these factories.
The Pellos plant has been a major employer in the region for decades. A potential loss of 42 jobs would have a negative impact on the local economy, and many workers would have to look for new jobs in an uncertain labour market. According to UPM, these measures are necessary to ensure the long-term sustainability of production.
While the Pellos mill is the main focus of attention, changes are also expected at the Savonlinna and Joensuu mills. UPM is preparing for temporary production stoppages at these mills due to demand uncertainty. Such production stoppages have a direct impact on the mill's production volume and may also affect the working hours of the employees and thus their financial situation. This creates insecurity for many families in these areas.
The restructuring negotiations are looking at different options for optimising production, with possible plans to reduce the number of workers and adjust working hours to meet demand. Demand fluctuations make the industry particularly vulnerable, and this is something that UPM is trying to balance with its current efforts.
Any negotiations on change must take into account the impact not only on the workers directly, but also on the wider economy of the region. Cuts in mill production and employment may affect subcontractors and service providers who are closely linked to this industrial ecosystem.
UPM says that measures are necessary to improve economic viability and competitiveness in the long term. The company is committed to negotiate constructively with employee representatives and to find solutions that minimise the negative impact on employees.
