UPM announced permanent closure of 1 million tons of newsprint and cultural paper capacity in Europe

At a time when Chinese paper-making enterprises continue to invest in cultural paper projects, another scene is being staged in Europe.

Affected by the new crown epidemic, the European cultural paper market has experienced a serious decline. On August 26, local time, UPM, the largest European cultural paper manufacturer, announced that in order to meet the needs of customers and ensure the company’s future competitiveness. As demand for cultural paper continues to be weak, the company announced that it would permanently close its newsprint and cultural paper mill in kaipola, Finland, while selling Shotton newsprint in Wales and streamlining the communication papers business function team.

Both plants are part of the UPM communication papers division. The move will reduce cultural and newsprint production by about 1 million tons.

UPM said that under the influence of the epidemic, the short-term demand for cultural paper was almost interrupted. Although there are signs of rebound, the impact of the epidemic on the global economy will worsen the market.

Specifically, the kaipola plant will be closed by the end of 2020. The factory has three paper machines with an annual total capacity of 720000 tons, including 450000 tons of newsprint and 270000 tons of coated cultural paper. The planned closure will affect 450 jobs.

UPM plans to close the plant by the end of 2020 at the latest, noting that high logistics and labor costs make kaipola the weakest of all UPM paper mills.

The Shotton plant, located in desside, Wales, produces 250000 tons of newsprint a year. UPM plans to sell the plant and wants buyers to convert the product to cardboard.

The entire shutdown plan will affect about 840 jobs in the company, most of which are located in Finland. After the completion of the plan, UPM costs can be reduced by EUR 75 million per year.

So far this year, UPM has announced the closure of Chapelle paper mill in France (235000 tons of newsprint), Jyv è Skyl è plywood plant in Finland, and streamlining finaulante label business.