UPM Kaipola paper mill shut-down by mid-December

What's the future for Kaipola? UPM is reportedly looking into enquiries
from companies in different sectors. Photo courtesy of UPM
16 Oct 2020 − 

Kaipola publication paper mill houses one coated magazine paper and two newsprint machines. Total capacity reduction amounts to 720,000 tpy.

UPM has concluded statutory employee negotiations on the closure of the Kaipola publication paper mill in Finland. According to UPM, operations at the mill will be permanently closed by mid-December, affecting a total of 448 jobs.

UPM blamed the decision on high tax burden and high logistics and labour costs in Finland, coupled with a continuing drop in demand. "In addition, the Covid-19 pandemic and related measures have caused a short-term disruption in demand and weakened the overall economic outlook," the company said.

Operations at the magazine and specialty paper mill Jämsänkoski, which together with Kaipola is part of the Jämsä River industrial complex, are to be continued. The mill produces uncoated magazine papers, and label and packaging papers on three machines. UPM will transfer 20 positions from Kaipola to Jämsänkoski mill.

This article is part of our free coverage on UPM's restructuring plans and the current trends on the markets for publication paper in Europe.

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