PM 10 at UPM Plattling could be decommissioned in July

LWC prices started to come under pressure in Q2 2019
24 May 2019 − 

Producers are aiming to reduce overcapacity in the European magazine paper market.

The planned closure of PM 10 for LWC paper at UPM's Plattling mill in Germany could take place in July. A representative of the company explained that the paper machine was to be taken out of operation shortly after negotiations with the employees have ended. UPM is aiming for this to be the case by the end of July at the latest, but possibly 2-3 weeks earlier depending on the progress of the negotiations.

In April, UPM announced its intention to permanently shut down the machine for market reasons. It produces coated wood-containing magazine paper and has a production capacity of around 155,000 tonnes per year. At the Plattling mill, UM operates two further paper machines for SC (PM 1, 400 000 tpy) and LWC (PM 11, 225, 000 tpy) which are not affected by the planned measures.

The LWC market is in overcapacity due to the 10-year decline in consumption, which UPM intends to counter by reducing its production capacity. Burgo has also announced that it would shut down PM 9 for LWC (400.000 tpy) at its Verzuolo mill in Italy and convert it for the production of packaging paper. The company last stated that the period of decommissioning was the end of October or the beginning of November. Market insiders stated that this could also take place earlier on in the course of October.

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