UPM Announced Decision to Sell Shotton Paper Mill

SEATTLE (Scrap Monster): UPM announced that it has reached an agreement with Eren Paper Ltd to sell its Shotton newsprint mill site in North Wales, United Kingdom and all related assets to the latter. The transaction is expected to close during late third quarter this year.

According to Eren, the Shotton site will be integrated to its existing business units. It also plans to make further investment at the site. The company will take over all the 190 employees currently working at the mill.

ALSO READ:

UPM Announced Improved Profit Outlook for 2021

UPM Paper Mill in Finland Avvounces Permanent Closure

The newsprint production at the mill is expected to stop by end-September this year. Eren will take control of the mill as of beginning of October 2021. The exact timeline for mill conversion plan will be communicated by the company in due course. Meantime, the company confirmed that the renewable energy plant and the material recovery and recycling facility at the mill site will continue operations during the conversion process.

Winfried Schaur, Executive Vice President of UPM Communication Papers noted that the agreement will provide a long-term future for the employees at its Shotton paper mill. It will help UPM to further consolidate its newsprint production capacity. Also, the sale will support Eren in expanding its business in the UK market. Schaur added.

The transaction will reduce UPM’s annual newsprint capacity by 250,000 tonnes. The closing of the sale will reduce fixed costs by approximately EUR 30 million.