UPM closes paper machines in Germany, Austria affecting 136 jobs

The Finnish forest industry company UPM closed down paper machines at its paper mills in Schongau, Germany and Steyrermühl, Austria, which will affect 136 employees, said UPM in a press release on Wednesday.

Employee consultation processes at UPM Schongau completed while accelerated end of newspaper production in Steyrermühl determined.

UPM has decided to close 485,000 tonnes of graphic paper capacity in Europe. The company permanently closes paper machine 6 at Schongau and paper machine 4 at Steyrermühl.

The decision was taken based on the plans announced in June 2022 and in March 2023.

The employee consultation process in Schongau was conducted in line with local legislations and has now been finalized.

The number of persons affected is 136 for the site. The uncoated publication paper machine 6 was permanently closed on Wednesday.

UPM Schongau continues graphic paper production on the remaining cost-competitive machines.

“We held constructive and fair employee discussions to reduce the impact of the paper machine closure on our personnel. Together with the employee representatives, we focused on countering the circumstances, primarily through partial retirement measures” said Wolfgang Ohnesorg, General Manager, UPM Schongau.

UPM Communication Papers ended the newspaper production at its Steyrermühl mill on Wednesday. As already communicated in March 2023 we thereby accelerate the plans to ensure competitive production at our remaining newsprint paper machines in Europe.

This decision will have no impact on the plans for the Steyrermühl site and its employees.

“I admire the professionalism and flexibility of our employees, who are already working conscientiously to integrate UPM Steyrermühl into the HEINZEL GROUP. The new owner will take over the responsibility for the site and thus also for the employees after the Closing of the transaction is completed at the beginning of 2024,” said Ernst Spitzbart, General Manager, UPM Steyrermühl.

Finnish bio-forestry company UPM Plywood on June 21 decided to cut 28 jobs following the reduction in its production capacity and the deteriorating market situation.