UPM forced to close its envelope paper machine at Tervasaari paper mill in Valkeakoski, Finland due to salaried employees' strike

VALKEAKOSKI, Finland, April 13, 2011 (Press Release) - UPM is forced to close its envelope paper machine at the Tervasaari Paper Mill in Valkeakoski due to the salaried employees' strike. The strike was issued by the Salaried Employees' Union PRO in Finland and it started on 6 April. Production work at the envelope paper machine ends today affecting about 40 employees. The two other paper machines at the Tervasaari mill will continue production.

"We have been working hard to improve our cost competitiveness during the recent years. Unfortunately, this strike is now destroying the good results of that work. The production disturbances also affect negatively our reputation as a reliable supplier in the eyes of our customers ", says Juha Kääriäinen, General Manager of the UPM Tervasaari Paper Mill.

The paper machines in other UPM paper mills in Finland are running for the time being but the risks are increasing day by day. UPM has made large special arrangements to keep the production running. These arrangements are causing extra costs for the company.