UPM stops newsprint mill, closes plywood mill

Finland-based forestry giant UPM announced July 16 that it was permanently ceasing production at its Chapelle newsprint mill in Grand-Couronne, France. The consultation process with employee representatives was completed on June 15 and approved by French authorities on July 15.

The closure impacts 228 people. UPM says it’s offering support to employees in order to alleviate effects related to the mill’s closing.

With the closure, UPM will reduce its newsprint paper capacity by 240,000 metric tons.

“We remain committed to selling the mill assets if we receive a suitable offer,” says Anu Ahola, senior vice president, news and retail, UPM.

The closure will result in annual savings of around 30 million euros ($35 million).

Meanwhile, UPM’s Jyvaskyla (Finland) plywood mill will be permanently closed on July 31, the company says. The closure will mean 147 lost jobs.

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