UPM Announces Temporary Shutdown of Kaukas Pulp Mill

Paper Recycling | 2026-06-24 07:27:13 | By Paul Ploumis

Fluctuating market conditions, raw material availability, and profitability concerns have badly impacted the producers.

Summary

UPM will temporarily idle its Kaukas pulp mill in Lappeenranta, Finland, for approximately six weeks starting August 3, 2026.
The company is also considering a temporary curtailment at its Pietarsaari pulp mill in October as it adjusts production to market conditions.
The shutdown is expected to impact regional wood procurement, reducing short-term demand for pulpwood and sawmill chips while affecting supply chain stakeholders.

SEATTLE (Scrap Monster): Finnish forest industry company UPM has announced a temporary shutdown of its Kaukas pulp mill in Lappeenranta, Finland. The proposed shutdown will commence on 3 August 2026.

The Kaukas mill will be idled for approximately six weeks. Meanwhile, UPM is also evaluating a potential temporary curtailment of its Pietarsaari pulp mill in October, though the final duration of the curtailment has not been decided. The company said the measures are intended to align production with current pulp market demand and manage rising operational costs.

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The decision highlights the ongoing challenges facing Finland’s pulp sector. Fluctuating market conditions, raw material availability, and profitability concerns have badly impacted the producers.

The shutdown at Kaukas is expected to affect regional wood procurement activities, reducing short-term demand for pulpwood and sawmill chips. The temporary pulp mill downtime will have an immediate impact on raw material flows. The development is being closely monitored by various industry stakeholders, including forest owners, harvesting contractors, and transport operators.

Following the announcement, UPM shares reported a decline in Helsinki trading.