UPM to cut its graphic paper capacity by 580,000 t

UPM will take 580,000 t of graphic paper capacity from the European market. The group’s mills in Rauma, Ettringen, and Docelles are affected by the capacity reduction.

Dwindling demand for graphic paper in Europe brings UPM to further reduce its graphic paper capacity. A total of 580,000 t of magazine and uncoated fine paper capacity are to be taken from the European market. UPM decided to shut down a PM in Rauma, Finland, and in Ettringen, Germany, as well as to either sell or close its Docelles mill in France. UPM furthermore announced to streamline its Paper Business Group and its global functions.

These steps follow the recent permanent production stop at UPM’s Stracel mill in eastern France which produced 270,000 t of LWC paper. The mill is to be sold to Belgian VPK Packaging Group and German Klingele Papierwerke who will jointly produce recycled containerboard at the site in the future.

UPM will shut down its PM 3 in Rauma which produces SC paper and has a capacity of 245,000 tpy. 90 employees will be affected by the PM closure. The mill is currently able to manufacture both SC and LWC paper with a combined capacity of 1.2 million tpy. The affected PM 4 in Ettringen can produce 175,000 tpy of SC paper. 155 people work at the machine. Together with the second production line, the mill’s total production capacity amounts to 460,000 tpy of uncoated magazine paper. The two machines in Rauma and Ettringen will be shut down by the end of the first half-year 2013.

UPM Docelles produces woodfree uncoated paper with a capacity of 160,000 tpy and employs 165 people. UPM said the process of selling the site would start immediately and finalised within a time frame of six months. A spokesman told EUWID there were no restrictions for interested buyers related to future activities at the mill meaning that a continuation of fine paper production could not be ruled out. The process related to the streamlining of the Paper Business Group and the global functions is to start after further analysis as of the beginning of February.

⇒ Find this article in its entirety and any associated background information in EUWID Pulp and Paper no. 4.

Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.

⇒ Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.