UPM Announces Temporary Shutdown of Kaukas Pulp Mill
Paper Recycling | 2026-06-24 07:27:13
Fluctuating market conditions, raw material availability, and profitability concerns have badly impacted the producers.
By Paul Ploumis
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.
RELATED NEWS:
UPM Has yet to Reach Agreement on Closure of Ettringen Paper Mill
UPM Announced Major Investment in Tervasaari Mill Modernization
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.
POLL
What is the primary reason behind UPM's temporary pulp mill shutdown?
Frequently Asked Questions
- Why is UPM shutting down the Kaukas pulp mill?
The company aims to align production with current pulp market demand and address rising operational costs.
- When will the Kaukas mill shutdown begin?
The temporary shutdown is scheduled to start on August 3, 2026, and last for about six weeks.
- How will the shutdown affect the forestry sector?
The downtime is expected to reduce demand for pulpwood and sawmill chips, impacting forest owners, harvesting contractors, and transport operators.
