UPM and employee representatives have completed the participation process on the planned closure of the company's Plattling mill in Germany.
UPM announced that the mill will be closed by the end of November 2023 latest. Paper production on PM 11 is expected to end on 15 November, and PM 1 is to stop producing paper on 22 November, reducing the coated and uncoated magazine paper output capacity in Europe by 595,000 tpy. About 400 employees will be affected the closure.
In July this year, UPM announced plans to close the Plattling in southeastern Germany mill to align its output capacity for printing and writing paper to customer demand, which is on a continuous structural decline. At the time, the company had expected fixed cost savings of around €60m, restructuring charges of €122m and an impairment of the leased CHP plant as items affecting comparability in its Q3 results. UPM re-confirmed this estimate as the financial impact of the closure.
