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Companies in the timber industry / Daily News / Wood-based panels / Europe / North America
May 31, 2016

UPM Pellos mills exceeded 10 million cubic meters in total softwood plywood production

UPM Pellos mills exceeded 10 million cubic meters in total softwood plywood production

UPM Plywood's Pellos mills have crossed a significant milestone of 10 million cubic meters in all-time total production. The operation that began in 1964 as a small chipboard factory has expanded over the decades to comprise three plywood mills.

"Pellos mills are clearly one of our main production units. They account for about half of our total production capacity, and practically all of the spruce plywood production", says Mika Kekki, Vice President, Production & Operations at UPM Plywood.

UPM mills Pellos production efficiency has improved significantly over the past two decades. For example, the volume of production per hour worked has more than doubled.

More than 90% of the Pellos mills' production is exported. Pellos products compete in the international market, where the most serious competitors come from clearly lower-cost countries, especially from South America.

The debut of 2016, was not so good for UPM Plywood. The division reported 20% drop in EBITDA for the first quarter of 2016. EBITDA for Q1/2016 was €20million, against €25 million in Q1/2015. UPM's Plywood delivery volumes were lower than the high level last year and sales prices decreased slightly.

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