UPM Communication Papers announced plans to permanently close its Ettringen paper mill in Germany, reducing its annual uncoated mechanical paper capacity by 270,000 tonnes by July 2025.
This closure is part of a larger restructuring effort aimed at aligning paper capacity with profitable customer demand in a market characterized by overcapacity.
The closure of the Ettringen mill will affect approximately 235 positions. In addition to the mill closure, UPM plans to implement further efficiency measures across its operations, including:
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Streamlining organizational structures at mills in Germany, Finland, the UK, and the USA
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Discontinuing the Central European Mill Support (CEMS) team
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Restructuring Mill Sourcing and RCP Sourcing teams
These additional measures are expected to impact another 227 positions. In total, the restructuring will affect 462 jobs across multiple countries: 314 in Germany, 107 in Finland, 34 in the UK, and 7 in the USA.
Gunnar Eberhardt, Executive Vice President of UPM Communication Papers, stated, "We are continuing to selectively adjust our paper capacity to a profitable customer demand. This would ensure an efficient and flexible use of our remaining paper assets."
The company aims to handle the restructuring measures in a socially responsible manner and will engage in dialogue with employee representatives. UPM expects to recognize restructuring charges of €74 million in its Q1 2025 results, with anticipated annual fixed cost savings of €39 million.
UPM Communication Papers is one of the world’s leading producers of graphic paper, with an annual production capacity of 4.3 million tonnes and approximately 5,000 employees. Despite these adjustments, the company asserts its continued role as a key market player, focusing on agility and innovation to meet evolving customer needs.
