UPM plans to cut 1.3 million tonnes of publication paper capacity in Europe and reduce workforce by 1,170 jobs to improve profitability and cost competitiveness of its paper business. The announcement follows UPM's acquisition of Myllykoski and the industry's efforts and plans to cope with overcapacity and shrinking demand in Europe.
UPM says it will remove 1.2 million tonnes of magazine paper capacity in Finland, Germany and France by the end of the year. In addition, 110,000 tonnes of newsprint capacity are to closed in Germany. The company also plans to temporarily halt uncoated woodfree paper production on PM 2 at UPM Nordland Papier in Germany and streamline pulp and paper operations at the Pietarsaari mill in Finland.