Finland’s UPM to sell plant in France

Finland-based UPM plans to permanently shut down a supercalendered (SC) paper machine in Rauma, Finland, and sell its Chapelle newsprint mill in Grand-Couronne, France. The measures would result in a reduction of 265,000 metric tons of SC capacity and 240,000 metric tons of newsprint capacity in UPM’s portfolio.

The measures will help safeguard the overall competitiveness and support the long-term performance of the business, according to the company.

The closure of PM 2 at UPM Rauma is expected to be completed by end of 2019. Production on the remaining two paper machines in Rauma will continue as before. It’s expected that 179 jobs will be lost, the company said.

As for UPM Chapelle, the company will open a bidding process for the sale of the mill. The sales process won’t impact deliveries to the customers. If no credible offer is received by mid-January 2020, a consultation process for a potential closure of the mill will be started while the search for a potential buyer will continue. 

Currently 236 people are employed by the Chapelle mill.

At the same time UPM plans to establish a new business services hub in Wroclaw, Poland, consolidating a number of services. The opening of the hub will affect 168 positions in 11 locations. UPM Finance & Control, UPM Communication Papers and UPM Raflatac plan to be the first users of the hub. The hub is expected to be in full operation by the end of Q3 2020.

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