Consumables

UPM receives a conditional offer for Aigrefeuille further processing mill and continues the Docelles mill sales process

Friday 19. July 2013 - UPM starts an employee information and consultation process in France

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.