Sappi confirms paper machine shutdown, affecting 93 jobs

Paper manufacturer, Sappi Europe, has confirmed the closure of Paper Machine 2 at its Kirkniemi mill in Lohja, Finland, reducing its annual production capacity of coated mechanical paper by 175,000 tonnes and leading to the loss of 93 jobs.

The announcement follows the commencement of a consultation process in August aimed at improving the mill’s profitability and cost competitiveness.

The shutdown is part of Sappi’s strategic plan to align production capacity with market demand and to optimise the utilisation of the mill’s remaining paper machines.

The closure of Paper Machine 2 is due by the end of 2025, with remaining output transferred to Paper Machine 1 and 3 at the Kirkniemi mill, which will both continue operating.

Sappi has said that some of the redundancies will be managed through “retirement arrangements,” with the company committing to support all affected employees through the transition.

A dedicated service point has reportedly been established at the mill in cooperation with the local employment office, with all impacted employees offered individual career transition coaching.

In its statement on the shutdown, Sappi Europe says that “deliveries to customers will continue without disruption.”

Misa Bursac, vice president of manufacturing, R&D, and technology at Sappi Europe, adds: "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.

“This step is part of our broader commitment to optimising our operations, enhancing sustainability, and ensuring the long-term competitiveness of 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 and ultimately our industry."