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The scarcity of raw wood affects the plans of forest companies more and more concretely.<\/span><\/p>\n According to UPM's CEO Jussi Pesonen, temporary and permanent shutdowns of production facilities, which have also been seen in Finland, will probably have to be done in the future. In addition to the challenges of the final product market, problems are caused by the reduced availability of raw wood and the increased price. Pesonen estimates that capacity has had to be limited in wood products, pulp, paper and cardboard as well.<\/p>\n \"Actually, product group like product group, we will definitely have to reduce capacity. Competitiveness, prices and costs are certainly not in that condition, and this will certainly affect the wood market.\"<\/p>\n \"It would certainly be much more challenging to think about the future if you had made a big investment here now,\" adds Pesonen. \"If there is uncompetitive capacity, it will be closed, and now I'm talking more broadly than about UPM's portfolio.\"<\/p>\n Second quarter result was dissappointing<\/strong><\/p>\n UPM's second quarter result collapsed compared to the corresponding period of the previous year.\u00a0The company generated turnover of 2,558 (2,562) million euros, almost as in the previous year, but the comparable operating profit fell by as much as 71 percent to 114 (387) million euros.<\/p>\n \"Our result in the second quarter was disappointing.\u00a0Product deliveries were well below the estimated end-use demand, and world market prices for commodities such as pulp and energy fell from historical peaks to cycle lows in six months,\" says UPM CEO Jussi Pesonen in the company's press\u00a0<\/strong>release.<\/p>\n In addition to the market challenges, according to Pesonen, the result of the quarter was affected by the major maintenance work of UPM Fibres, UPM Energy and UPM Biofuels, as well as the normal costs related to the start-up of Paso de los Toros.<\/p>\n UPM is closing a paper mill in Germany<\/strong><\/p>\n Graphic paper manufacturer UPM Communication Papers plans to permanently close its Plattling factory in Bavaria, Germany.\u00a0Closing the mill's two paper machines would reduce the European printing paper capacity by a total of 595,000 tons.\u00a0According to UPM, it proactively strives to ensure the competitiveness of its business operations and therefore adapts the graphic paper capacity to meet profitable customer demand.\u00a0Production of both paper machines is planned to end by the end of 2023.<\/p>\n If implemented, the plan would affect an estimated 401 UPM employees in Plattling.\u00a0In addition, effects on the factory's service providers can be expected.\u00a0Cooperation negotiations with employee representatives will begin immediately as required by local legislation.<\/p>","protected":false},"excerpt":{"rendered":" The scarcity of raw wood affects the plans of forest companies more and more concretely. According to UPM’s CEO Jussi Pesonen, temporary and permanent shutdowns of production facilities, which have also been seen in Finland, will probably have to be … Continue reading
\nPesonen says that UPM is adapting to the market, but points out that the market is also changing.<\/p>\n