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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