UPM to End Paper Production at its Kaukas Mill in Finland

Should the plans be implemented the number of employees affected at the UPM Kaukas paper mill is estimated at 220.

SEATTLE (Scrap Monster): UPM Communication Papers plans to end paper production at its UPM Kaukas paper mill in Finland, thus reducing its annual production capacity of coated mechanical paper (LWC) by 300,000 tpy.

Shutdown of the PM 1 at the mill is planned for the end of the year 2025, UPM says. The company's pulp, sawn timber and biofuels production and R&D activities at the UPM Kaukas site will continue as before.

Should the plans be implemented the number of employees affected at the UPM Kaukas paper mill is estimated at 220. A final decision is to be taken after the co-determination processes have been concluded in line with local legislation in Finland.

UPM has taken the decision against the background of a declining global demand for graphic paper due to digitalization, macroeconomic challenges, and changing consumer habits. The company says the planned steps will 'enable a healthier capacity utilization and support its overall cost structure and competitiveness in the global graphic paper markets.'

UPM plans to shift its coated mechanical paper production in Finland from Kaukas to its Rauma mill, striving 'to optimize the asset structure and improve cost efficiency, particularly in our production and logistics processes.”

UPM is to recognize restructuring charges of €78m (€35m cash impact and an impairment of €43m) as items affecting comparability in its Q3 2025 result. The planned actions are estimated to result in annual fixed cost savings of €32 million.

Courtesy: www.fingerlakes1.com

• University of Houston Researchers Call for Unified Approach to Recycling Plastics
• E-waste recycling in Ghana exposes workers to toxic pollution and health risks
• Volatile Prices and Sluggish Demand Weigh on Global Non-Ferrous Scrap Markets
• Chinese Scrap Metal Market See Notable Price Jump on the Index- December 3, 2025