According to the labels manufacturer, the planned actions are estimated to result in annual cost savings of about €12m starting from the beginning of 2014.
According to the firm, the labelstock factory in Martigny, Switzerland, the coating operations in Melbourne, Australia and Durban, South Africa as well as the slitting and distribution terminal in Johannesburg would be closed.
In addition, working time and shift changes and reductions are planned in France, Spain and the UK. The product range, service and deliveries offered to customers will not be impacted by these plans.
170 positions
UPM said that if all plans will be implemented, the estimated total impact would be maximum 170 positions in the affected countries.
Decisions will be taken after consultation and negotiations with the employees in the relevant countries. Most of the restructuring is estimated to be complete by the end of 2013.
UPM Engineered Materials president Jussi Vanhanen said: "The economy in Western Europe has been weak for a long time and we don't expect the situation to improve in foreseeable future. Simultaneously, the demands of our customers for cost-efficient labelling solutions continue to increase all over the world.
"In order to secure our customers' and our own profitability in the long run, we need to ensure that our manufacturing operations continue to be the most cost competitive in the industry. Unfortunately the planned restructuring would also mean that we will lose a significant number of dedicated employees.
"We will continue investing in growing markets in line with our strategy. In the past couple of years, we have strongly enhanced our service and operations network in Asia, Latin America and Eastern Europe. Capacity adjustments are taking place in areas, where the demand situation is not in line with our production capacity."
