Valmet, a supplier of pulp and paper technologies and automation services, has announced the commencement of change negotiations starting yesterday (5 September).
The negotiation impacts its Paper segment line’s Board and Paper Mills business unit in Finland.
The unit, responsible for developing and delivering board and papermaking lines and technologies worldwide, will engage in discussions to improve the profitability and competitiveness of its business operations.
Earlier this year, the business unit started actions to adapt to the evolving market situation but these have been deemed insufficient.
The negotiations will encompass all employees within the Board and Paper Mills business unit, totalling approximately 1,300 individuals.
These talks are not expected to affect other divisions or employees within the Paper business line.
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The proposed plan includes a restructuring of organisational structures, refinement of operational methods, and adjustments in staffing levels to match work requirements.
Valmet’s preliminary assessment suggests the possibility of temporary and permanent layoffs, retirements, and internal job reallocations.
The anticipated permanent staff reductions could reach roughly 200 positions.
However, the specifics of the temporary and permanent layoffs will be determined throughout the negotiation process.
Valmet employs more than 19,000 individuals globally, with approximately 6,600 based in Finland.
The company engages in developing and supplying process technologies, automation, and services for the pulp, paper, and energy industries.
In 2023, Valmet registered net sales of approximately €5.5bn ($6.11m).
Recently, the company announced the opening of a new service centre in Beihai, China.
