Helsinki (News release) -- End of July, UPM announced plans to permanently end paper production in Kaukas and to shift its coated mechanical paper production in Finland to UPM Rauma mill.

The employee consultation processes have now been completed. Paper machine 1 in Kaukas will be permanently closed during Q4. The reduction of personnel is 220. Following the closure, coated mechanical paper production capacity will be reduced by 300.000 tonnes annually.

UPM's pulp, sawn timber and biofuels production and R&D activities at UPM Kaukas integrate will continue as before.

"The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees. As part of the process, we agreed to implement a from-job-to-job program, which has been UPM's established model for change support since 2006," says Matti J. Laaksonen, General Manager, Kaukas and Kymi mills.

"The last few weeks have not been easy for any of us. Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure," Laaksonen concludes.

To ensure safe conditions at the mill following the closure, an after-care team will be in place.