UPM’s CEO: Finnish wood remains far too expensive as cost pressures hit mill operations

UPM CEO Massimo Reynaudo says Finland’s wood prices remain significantly too high for the company’s mills to operate competitively, warning that the imbalance between expensive raw material and a weak pulp market continues to create pressure for production curtailments. While the downturn in global pulp prices affects revenues, Reynaudo makes clear that the core strain lies on the cost side — namely, Finland’s historically elevated wood prices. During the second half of the year, UPM temporarily shut down production at its Kaukas and Pietarsaari mills. Further downtime remains possible. “We don’t speculate on the future ...