UPM opened a new production line at its Kalso veneer mill in Kouvola, Finland and immediately began negotiations to go on to short working.

The company said the new line increases efficiency significantly so it wants to reduce the workforce of 190 by 65 people and run at reduced capacity until the market picks up.

The upgraded mill can produce 80,000m3 of rotary cut spruce veneers used mainly in the parquet industry.

UPM is also cutting back at its Lohja thin veneer mill by continuing a temporary shutdown and reducing the 100 staff by 15. The mill produces birch and pine veneer for the European furniture industry.