In order "to adapt its uncoated paper production capacity to long-term profitable customer demand" finnish paper manufacturer UPM will shut down two machines. This will reduce its annual capacity by 485,000 tonnes of the 6 million tonnes of graphic paper produced at its 13 sites.
By the end of the second quarter of 2023, the Helsinki-listed group will permanently shut down paper machine (PM) 6 at its Schongau mill in Germany. The PM6 has an annual uncoated paper capacity of 165,000 tons. 135 out of 490 jobs will be lost. The other two machines at the site will continue to operate.
And, six months earlier than announced, UPM to stop production at Steyrermühl newsprint mill in Austria . The site, which can produce 320,000 tonnes of newsprint per year, will close by the end of the second quarter of 2023. Last June, the group had announced the sale of this paper mill with 400 employees to the pulp, packaging and paper producer Heinzel, which will convert the plant to the production of kraft for packaging. "We are thus accelerating plans to ensure competitive production on our remaining newsprint machines in Europe." says UPM.
"The covid-19 years caused demand disruptions in the graphic paper markets, followed by a period of high inflation and unprecedented volatility last year, justifies the Finn. Now that volatility is decreasing, the graphic paper market is returning to its downward trend in demand that has characterized the industry for over a decade."
Massimo Reynaudo, Executive Vice President of UPM's Graphic Paper Division, said the closures were aimed at "ensure cost-competitive production and efficient use" assets in all circumstances.
