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UPM to Close Two SC Paper Machines

Helsinki, Finland 08 April 2013 -- UPM said that it will permanently close down paper machine 3 at its Rauma mill in Finland and paper machine 4 at its Ettringen mill in Germany by the end of April.

The machine closures will affect 87 employees at the Rauma mill and 150 at the Ettringen mill. Employee negotiations related to the closing of the machines concluded in March, UPM said.

UPM's decision to close the paper machines was originally announced on Jan. 17 of this year and is part of its overall strategy to reduce paper capacity in Europe by 850,000 tonnes during 2013.

PM 3's annual production capacity is 245,000 tonnes, and PM 4's annual capacity is 175,000 tonnes. Both machines produce of SC (supercalendered) paper.

On Jan. 4 of this year, UPM shut down its Stracel paper mill in France. The mill, which employed 250 people, had been producing 270,000 tonnes per year of coated magazine paper grades.

Currently, UPM is trying to sell its Docelles mill (France), which is producing 160,000 tonnes of uncoated woodfree papers annually. In a statment UPM said, "The continuing challenges in European economy have significantly impacted the consumption of paper, exacerbating the effect of structural changes in paper end-uses and resulting in further decline in the demand of graphic papers in Europe. High costs and significant overcapacity continue to challenge the industry operators in Europe."

Rauma Mill

UPM's Rauma mill manufacturers LWC and SC papers with annual capacity of 1,210,000 tonnes. Located in Western Finland the mill employs 670 people. The mill was founded in 1969.

Ettringen Mill

UPM's Ettringen paper mill manufactures uncoated magazine papers. Its two production lines have a combined annual capacity of 460,000 tonnes. Located in Bavaria, south Germany, the mill employs 391 people. The mill was founded in 1897.



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