Sappi considers paper machine closure, affecting up to 100 jobs

Sappi Europe is considering shutting down a paper machine at its Kirkniemi mill in Finland, reducing its annual capacity of coated magazine paper by 175,000 tonnes

Jonathan Pert
August 13, 2025
The proposed closure is in response to declining demand and financial difficulties

Paper manufacturer, Sappi Europe, has announced a proposed asset restructure at its Kirkniemi mill in Finland, in response to a decline in demand across Europe and what Sappi describes as “sustained financial challenges.”

The restructure includes the potential closure of one of three paper machines at its mill in Lohja, Finland, which would reduce the mill’s annual capacity of coated magazine paper by 175,000 tonnes.

The proposed changes are intended to align production capacity with changing market dynamics and ensure long-term competitiveness in the graphic paper market. Paper machines 1 and 3 will remain in operation.

The machine closure would be managed with the aim of ensuring continuity of supply with minimal disruption to customers.

The consultation process may affect up to 100 jobs at the Kirkniemi Mill. Sappi has said: “It remains committed to supporting employees throughout this process in accordance with Finnish legislation and will work closely with employee representatives to find appropriate solutions.”

Marco Eikelenboom, chief executive officer of Sappi Europe, says: "This proposed step reflects the broader changes in our market environment and supports our ongoing commitment to improving efficiency, sustainability, and long-term competitiveness across our European operations.”

Sappi also recently announced that it will bring its complete portfolio of label papers and packaging solutions to two European industry events in September.

Sappi will exhibit simultaneously at both Drinktec in Munich from September 15th to 19th and Labelexpo Europe in Barcelona from September 16th to 19th, with 2025 marking Sappi's first time participating in Drinktec.

At both shows, visitors will discover Sappi’s full arsenal of solutions, from self-adhesive face stock papers and release liners to wet glue label solutions.

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