UPM-Kymmene is planning to curtail its sawmilling and plywood capacities in Finland in 2009, as markets remain soft.
The company has announced a decline in its third quarter results with sales dropping from e2.47bn in 2007 to e2.36bn, operating profits down from e195m to a loss of e40m and pre-tax profits falling from e144m to a loss of e90m.
This trend has led UPM to reduce production of sawn timber and processed timber products at all of its Finnish mills, with immediate negotiations with the 800 affected staff.
It is also carrying out a 90-day curtailment period at the Heinola plywood mill, as the birch plywood market weakens further.