UPM Announces Mill Closures in Germany

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UPM Communication Papers, a leading paper manufacturer, is permanently closing its Hürth newsprint mill and shutting down one fine paper machine at its Nordland Papier facility, both located in Germany.

This move comes in response to the continued decline in graphic paper demand, fueled by the relentless shift towards digital communication. With demand showing no signs of significant recovery, UPM is taking proactive steps to ensure its long-term competitiveness and optimize its production capacity.

intl1 29may24 1Hürth mill: produces 330,000 tonnes of newsprint paper annually and employs around 135 people.

The closures are expected to result in a significant reduction of UPM's graphic paper capacity, with an estimated annual loss of 610,000 tonnes. Additionally, approximately 345 employees will be affected by the closures, with 135 at the Hürth mill and 210 at the Nordland Papier facility. The company acknowledges the difficulty this news poses for its workforce and is committed to working with employee representatives during the transition.

intl1 29may24 2Nordland Papier mill: one fine paper machine will be shut down, impacting approximately 210 employees. Production on remaining machines will continue.

While the closures will impact UPM financially, incurring restructuring charges of EUR 113 million, the company expects to achieve annual cost savings of EUR 45 million. UPM emphasizes that these closures are essential to strengthen their overall cost competitiveness and ensure the long-term viability of their paper operations.

UPM Communication Papers remains committed to providing its customers with reliable paper solutions. They assure their clients that these closures will not hinder their ability to deliver high-quality products and services. Throughout this transition, UPM maintains its dedication to responsible business practices and emphasizes its commitment to employee well-being.