UPM Receives Offer for Aigrefeuille Mill, Still Seeking Offer for Docelles Mill
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UPM, Helsinki, Finland, reports that it is proceeding with the schedule announced in January 2013 to find buyers for itsDocelles paper mill and its Aigrefeuille further processing mill in France. The company 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," said Anssi Klinga, SVP, UPM Timber.
"As for the UPM Docelles mill, UPM has been conducting an active search for a buyer that could offer a credible future for the mill. Unfortunately the general economic climate in Europe is not favoring our process and it is very challenging to attract investors to new initiatives," Jyrki Ovaska, president of the UPM Paper Business Group, noted.
UPM will continue the sales processes, and at the same time 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 functional streamlining measures in France.
UPM said that it is continuing 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 were originally announced this past January 17. 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 January 17, follows its 2012 renewed Timber business strategy. UPM develops its sawmills closely integrated with its pulp and paper mills.
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