Sappi Europe has confirmed it will close Paper Machine 2 (PM2) at its Kirkniemi Mill in Lohja, Finland, by the end of 2025.
The decision follows a consultation process launched in August 2025 aimed at improving the mill’s profitability and competitiveness amid ongoing structural changes in the paper market.
The shutdown will reduce Sappi’s annual coated mechanical paper production capacity by 175,000 tonnes and result in 93 job cuts. Some of the redundancies will be managed through retirement, while the company has pledged to support affected employees through transition measures, including career-coaching services in partnership with local employment authorities.
“While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements,” said Misa Bursac, VP Manufacturing, R&D and Technology at Sappi Europe. “By consolidating production on Kirkniemi’s remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations.”
The closure is part of Sappi’s broader plan to align production capacity with market demand and optimize the utilization of the mill’s remaining paper machines. Production previously handled by PM2 will be transferred to Kirkniemi’s Paper Machines 1 and 3, ensuring continued deliveries to customers without disruption.
Sappi Europe stated that the move supports its long-term strategy to enhance sustainability, streamline operations, and maintain competitiveness in a rapidly evolving print media market.
Sappi Europe, a division of Sappi Limited headquartered in Johannesburg, South Africa, is a leading producer of coated fine paper, packaging and specialty papers, and pulp. With manufacturing sites and sales offices across Europe, the company serves customers in more than 150 countries.
