UPM to permanently idle three paper machines

UPM-Kymmene Corp., headquartered in Helsinki, Finland, has announced plans to permanently close three paper machines in its network.

The machines to be closed are Paper machine 2 at UPM’s Kaukas mill and paper machine 5 at UPM Jämsänkoski, both located in Finland, and paper machine 1 at UPM’s Shotton mill in the U.K. Production will be ceased at all three locations by the end of March 2015, the company says.

UPM adds that following consultation with its employees it is continuing with its planned closure of paper machine 3 at UPM’s mill in Chapelle, France. That closure was announced this past November.

The closures of the three paper machines will reduce UPM’s coated and uncoated magazine paper capacity by about 460,000 metric tons and its newsprint capacity by 215,000 metric tons.

In announcing the closures, Bernd Eikens, executive vice president of UPM Paper ENA, says, “These decisions are unfortunate for the personnel involved, and the past months have been challenging for all of us. From the business point of view, the measures taken are necessary to improve our operating rates and profitability in the European paper business, which still suffers from overcapacity. By reducing capacity we ensure the efficient use of our remaining machines in Europe.”

UPM’ Kaukas paper mill manufactures coated magazine papers and has an annual capacity of 560,000 metric tons.
UPM’s Jämsä River Mills manufacture uncoated magazine papers, label and packaging papers coated magazine papers, directory paper and newsprint. The mill has a combined annual capacity of 1.6 million metric tons.

UPM’s Shotton Paper manufactures standard newsprint with an annual capacity of 490,000 metric tons.