UPM to shut down LWC paper machine in Germany

Photo courtesy of UPM, Matti Immonen
02 Apr 2019 − 

Demand for LWC and other mechanical paper has been declining steadily during the past ten years. This has led UPM to decide on the closure of a PM in Plattling.

UPM has announced its intentio to permanently close PM 10 at its Plattling mill in Germany, thus reducing output capacity by about 155,000 tpy of LWC. The company explained it was responding to globally declining markets over the last 10 years and adjusting its capacity in line with its approach of maintaining the most modern and competitive assets. Among its European coated mechanical machines Plattling PM 10 had both the lowest capacity and the highest technical age, the company said. Paper production on PM 1 and PM 11 is planned to continue at the mill site.

The mill's total capacity including PM 10 is 785,000 tpy of LWC and SC. PM 1 is producing up to 405.000 tpy of SC paper, and PM 11 has an output capacity of 225.000 tpy of LWC. The company said that PM 10 has been producing mainly offset LWC.

The machine is planned to be closed after the employee consultation process will have been finalised, which is to start in the course of April. The planned closure is to affect about 160 positions at the Plattling mill. UPM said it would recognize restructuring charges of about €30m in its Q2 2019 results. The planned shutdown is to result in annual savings of approximately €17m.

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