Helsinki - Finnish paper and forestry group UPM-Kymmene on Monday said it would shut a plant in Canada, temporarily close other units and trim some 680 jobs, citing high production costs. The Miramachi paper mill in Canada that makes magazine paper and was temporarily closed in August 2007 would remained closed, the group said in a statement, noting the impact of the strong Canadian dollar.
The closure of the mill would mean 450,000 tons less production of magazine paper.
Temporary measures that would cut newspaper print production by 250,000 tons included a 10-month shutdown of a paper machine in Kajaani, Finland, and a two-month shutdown of a paper machine in Steyrermuehl, Austria.
The measures were expected to generate annual savings of 50 to 70 million euros (70 to 100 million dollars). The group would book one- time costs of 105 million euros for fourth quarter 2007 over the closure in Canada.
The group also planned cuts of its label material operations, impacting lines in Tampere, Finland, and Melbourne, Australia.
UPM predicted slower demand in 2008 while costs were expected to increase for wood, recycled paper and energy.
UPM, with production in 15 countries, is a leading producer of printing paper, specializing in magazine paper, newsprint, fine and speciality paper, converting materials and wood products.
