The European paper companies targeting the China market
Weakness in the European market, prompting UPM-Kymmene Group and other European paper makers will be focused on Latin America and the Chinese market, UPM-Kymmene, said Chairman of the Board Bjoern Wahlroos.
“These districts have a new competitive raw materials, as well as the final product demand is rising markets, expansion of the forces in these areas is right,” Wahlroos 4 in Helsinki said in an interview. “Most of the global paper manufacturer in Latin America to expand pulp business expansion in China and India, paper business, because this is where you can play a role.”
UPM-Kymmene in July last year, took over the Uruguay pulp mill and a eucalyptus plantation in order to South American countries to expand production and reduce production capacity in Finland. This transaction will help to UPM-Kymmene paper mill in China to provide low-cost pulp supply. In Latin America, eucalyptus in 7 to 10 years time you can start logging, while the spruce and birch in Finland will have to 60 years. Although the closure of UPM-Kymmene of Finland region can not be any other major paper mills, Wahlroos said he was convinced that UPM will be similar with the plywood business reorganization and other businesses to continue to take effective measures.
UPM-Kymmene plywood sector in January said it would dismiss 830 employees. UPM-Kymmene and Stora Enso are in Finland to reduce their employees and reduce capacity, to cope with falling demand.