Newsprint production is planned to stop by 30 September this year.
UPM announces that it has signed an agreement to sell its Shotton newsprint mill in the UK to Eren Paper Ltd, a subsidiary of Modern Karton Sanayi Ve Ticaret A.Ş., the containerboard and corrugated packaging business of the Turkish industrial conglomerate Eren Holding. Eren plans to integrate the Shotton site into its existing business units and to make further investment at the site.
The closing of the transaction is planned for late Q3 2021, and newsprint production is planned to stop by 30 September this year.
Renewable Energy Generation plant and Material Recovery and Recycling Facility (MRRF) will continue operations throughout the conversion process, UPM says. UPM plans to continue serving UK newsprint customers also after the sale and will continue sourcing RCP in the UK. UPM and Eren have agreed to co-operate closely during the transition period to ensure a smooth transfer of the operations.
The transaction will reduce UPM’s annual newsprint capacity by 250,000 tonnes and fixed costs by €30m upon closing of the sale. The fixed costs reduction is in addition to the earlier communicated fixed costs savings impact of €130m from actions implemented during H2 2020 and 2021.
Read more on the acquisition of UPM's Shotton paper mill in our next edition of EUWID Pulp and Paper.
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