Finnish forestry and paper company UPM is cutting 179 jobs – 159 permanently – at its plant in the west coast city of Rauma.
The company spent the last two months in negotiations with unions over the job cuts, which will shut one of three production lines at the paper mill.
UPM will also cut another 41 jobs from its service centre in Tampere as it moves those positions to Poland where labour costs are cheaper.
“We have had a difficult time for everyone over the past few weeks. However, we need to secure the future competitiveness of UPM’s paper business and the Rauma mill in our highly challenging market environment, as demand for graphic paper continues to decline” says Anu Ahola, Vice President of Newspaper and Retail Paper at UPM.
Big corporate tax number
The news of the finalised job cuts comes as UPM Group became Finland’s biggest corporate tax payer.
With the 2018 tax figures released this week, the company confirms that UPM-Kymmene Corporation and its 18 subsidiaries registered in Finland paid a total of slightly more than €200 million in corporation tax.
Corporate income taxes paid by UPM increased significantly from the previous year, when it paid around €173 million.
The second biggest corporate tax payer was state-owned oil refining company Neste (€146 million); followed by German multinational chemistry and pharmaceutical company Bayer (€145 million). Bayer has a pharmaceutical factory in Turku.