UPM will adopt a completely new business structure consisting of three business groups which are: 1) Energy and Pulp, 2) Paper, and 3) Engineered Materials. Previously the company consisted of five divisions. The change will take effect on December 1.
"Changes in the business environment have continued and intensified. UPM responds to these challenges with a new business structure which improves our capability to leverage the company's competitive advantages. Our target is to create a structure and leadership model which sets the basis for strong, market driven operations in all the three business groups," said Jussi Pesonen, president and CEO of UPM.
Manufacturer of self-adhesive lablestock and RFID tags and inlays, UPM Raflatac will be part of UPM's Engineered Materials business group.
Along with the business group restructuring, the company also announced several key personnel changes. Pauli Hänninen, the current executive vice president, technology, will continue in group projects reporting to the CEO. Matti Lindahl, president of wood products division, will retire at the end of 2008 at the age of 62.
Heikki Pikkarainen has stated that as he is not able to identify a suitable position in the new organization. He has decided to leave the company later this year in a jointly reached agreement. Markku Tynkkynen will leave the executive team out of his own initiative. He will leave the company by a mutual agreement.
The new organization and responsibilities will take effect December 1, 2008.
In addition to the restructuring of the company, UPM Raflatac is promoting at Labelexpo its products and services geared toward sustainability. These include the RafEco product line, which consists of 24 products; RafCycle, a new waste handling service; and UPM ProFi, a construction material created from recylcled label waste.