462 staff to affect as UPM to close paper mill in Germany, stop CEMS

Finnish forest-based bio-industry company UPM has decided to permanently close its paper mill in Ettringen, Germany, said UPM in a press release on Tuesday.

The closure will reduce the annual capacity of uncoated mechanical paper by 270,000 tonnes during July 2025.

Should the plans be implemented the number of positions affected in Ettringen is estimated at 235.

The company also planned to discontinue the Central European Mill Support (CEMS) team and streamline Mill Sourcing and RCP Sourcing teams according to new capacities and it will affect 227 more employees.

Considering all planned changes announced on Tuesday by Communication Papers, there would be a total of 462 positions impacted, thereof 107 in Finland, 314 in Germany, 34 in the UK and 7 in the USA.

The codetermination talks between the authority and the workers council will start immediately in line with local legislation.

“With the plans announced today (Tuesday), we are continuing to selectively adjust our paper capacity to a profitable customer demand. While we see these planned changes to be necessary to safeguard our strong position and future, we are aware that today’s announcement demands much from our employees in Ettringen. We aim to handle the restructuring measures in a socially responsible way and will engage now into dialogue with employee representatives,” said Gunnar Eberhardt, Executive Vice President, UPM Communication Papers.

All affected mills and functions will follow up with their own implementation steps during 2025, and the company is committed to working closely with affected employees, handling possible employment actions in accordance with local legislation.

“With the planned measures we improve cost efficiency and competitiveness, while ensuring a reliable supply from our production locations in Finland, Germany, the UK and the USA, ” said Antti Hermonen, Senior Vice President Operations, UPM Communication Papers.

These plans are a continuation of necessary steps to proactively align with customer demand and ensure competitiveness.

UPM would recognize restructuring charges of EUR 74 million (EUR 60 million cash impact and an impairment of EUR 14 million) as items affecting comparability in its Q1 2025 result. The planned actions are estimated to result in annual fixed cost savings of EUR 39 million.