UPM introduces a new profit improvement target of EUR 150 million – UPM Paper ENAplans to reduce 800,000 tonnes of publication paper capacity in 2015, including the closure of PM1 at Shotton Paper.
UPM is introducing a new profit improvement target with an annualised impact of EUR 150 million by the end of 2015.
The target includes savings in variable and fixed costs in all UPM businesses as well as planned capacity closures in the European paper business, which continues to suffer from over capacity.
“During the past 12 months we have been able to improve our financial performance through streamlining but also through better focus and significant decrease in variable costs.
“Our new business structure has shown that it is capable of delivering results and we have been able to identify further profit improvement potential in our businesses. This potential we aim to capture in 2015, ” says Jussi Pesonen, president and CEO of UPM.
“The European paper business is a case for itself. We have achieved a turnaround in profitability during 2014. Nevertheless, the current operating rates are unacceptably low and the current economic environment is not promising tailwind for 2015. We plan to adapt our production to meet the profitable customer demand. We also ensure savings without endangering customer deliveries in the structurally declining market”, says Pesonen.