UPM-Kymmene said it would shut a plant in Canada, temporarily close other units and trim some 680 jobs, citing high production costs. The Miramachi paper mill in Canada, which makes magazine paper, was temporarily this past August. With the strong Canadian dollar the company has decided that the mill will remain closed.
The closure of the mill would mean 450,000 tons less production of magazine paper.
Additionally, the company has announced it will be taking a10-month shutdown of a newsprint machine in Kajaani, Finland, and Steremuehl, Austria, which will reduce production by 250,000 tons.
The group also planned cuts of its label material operations, impacting lines in Tampere, Finland, and Melbourne, Australia.
UPM predicted slower demand in 2008 while costs were expected to increase for wood, recycled paper and energy.