Schwedt mill to be converted to containerboard production. Newsprint operations will be continued under a contract manufacturing agreement between UPM and LEIPA until the end of 2017 at the latest.
Today, UPM announced that it has signed an agreement to sell its Schwedt newsprint mill in Germany and relevant assets to LEIPA Georg Leinfelder GmbH (LEIPA) for €70m. According to UPM, the entire staff of Schwedt mill will transfer to LEIPA as old employees. The transaction is reportedly subject to customary third party approvals.
UPM Schwedt mill houses one paper machine with an installed capacity of 280,000 tpy of newsprint. LEIPA plans to convert the paper machine to containerboard production and produce 450,000 tpy of white-top testliner at the site. Newsprint operations in Schwedt are said to be continued until the end of 2017at the latest under a contract manufacturing agreement between UPM and Leipa.
"UPM continues newsprint production at its Chapelle, Kaipola, Hürth, Schongau, Shotton and Steyrermühl mills," the company explained.
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