UPM reaches phase II of Sappi venture
Material manufacturers, UPM and Sappi, have reached the next stage of their Joint Venture which was first announced in December last year
UPM has permanently ended paper production in its Kaukus mill in Finland, affecting 220 jobs and reducing mechanical paper production capacity by 300,000 tonnes annually
UPM has formally announced the permanent end of paper production in its Kaukus mill in Finland.
UPM first announced plans to permanently end paper production in Kaukas in July, with the stated aim of shifting its coated mechanical paper production in Finland to the UPM Rauma mill.
Paper Machine 1 in Kaukas will now be permanently closed during Q4, impacting 220 employees. Following the closure, coated mechanical paper production capacity will be reduced by 300,000 tonnes annually.
UPM has announced that employee consultation processes for those affected by the closure have now been completed.
The pulp, sawn timber, and biofuels production at UPM Kaukas will reportedly continue as before, as well as its R&D activities.
Matti Laaksonen, general manager of UPM’s Kaukas and Kymi mills, says: “The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees.
“As part of the process, we agreed to implement a ‘from-job-to-job’ programme, which has been UPM’s established model for change support since 2006. The last few weeks have not been easy for any of us.”
Speaking about the team at the mill, Laaksonen adds: “Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure.”
UPM Adhesive Materials also announced plans to shut down its label materials production in Nancy, France, in order to centralise its label material production to more cost-effective units.
According to the company, the decision was driven by overcapacity, resulting from “exceptional market developments during the past few years.” The plans could affect up to 82 jobs at the company.
Fellow European paper manufacturer, Sappi Europe, also recently announced the closure of a paper machine, impacting its annual coated mechanical paper capacity by 175,000 tonnes and leading to the loss of 93 jobs.
The closure of Paper Machine 2 at Sappi’s Kirkniemi mill, also in Finland, is part of the company’s strategic plan to align production capacity with market demand.
