UPM will end paper production at Kaukas (Finland) and Ettringen (Germany) paper mills, reducing its annual production capacity of printing and writing papers by 570,000 tonnes, or 13% of its capacity.
The demand (decreasing) for coated mechanical from Kaukas will be supplied by Rauma mill.
Market pulp and other activities will continue normally in Kaukas. It couldn’t be different once the site makes the demanded northern softwood.
UPM is clearly shifting its focus from paper to market pulp, in a planned and admirable way.
Uruguay, the house of its Bleached Eucalyptus Kraft Pulp (BEKP), is under 10% tariffs when exporting to the USA, while Brazil is suffering 60% (the “basic” 10% plus 50%). This difference may reshuffle shipments from Latin America.
