UPM to narrow down paper production in Germany

Finnish forest industry company UPM has planned to permanently close paper machine 10 at UPM Plattling, Germany, reducing the annual capacity of coated mechanical paper in Europe by approximately 155,000 tons.

Paper production on paper machines 1 and 11 is planned to continue at the mill site, said an official press release.

In total 160 positions would be affected by the plans at UPM Plattling. The employee consultation process will start in the course of April in line with local legislation.

The machine is planned to be closed after the consultation process will have been finalized.

"Paper markets globally have been declining consistently over the past 10 years. UPM Communication Papers has responded to this development by selective capacity reductions, always considering the competitiveness of our business - and we will continue to do so also in future. The planned closure announced today is in line with this approach and focuses on maintaining the most modern and competitive assets," said Winfried Schaur, Executive Vice President, UPM Communication Papers on Tuesday.

UPM will recognize restructuring charges of approximately EUR 30 million as items affecting comparability in its Q2 2019 results. The planned actions would result in annual savings of approximately EUR 17 million.