UPM To Restructure and Streamline Paper Mill Operations

SEATTLE (Scrap Monster): UPM announced a series of actions to restructure and streamline its operations so as to ensure boosted performance. These were declared in the company’s most recent stock exchange filing.

In order to boost competitiveness of UPM Communication Papers, the company announced its plans to permanently close the UPM Kaipola paper mill in Finland and sell its Shotton paper mill in Wales. In addition, the company plans to streamline the Communication Papers business function teams. Also, UPM Biorefining and UPM Specialty Papers has announced plans for reorganising and streamlining activities in Finnish pulp mills, UPM Forest and UPM Tervasaari mill in Finland.

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All of the above planned actions are expected to result in annual cost savings of nearly EUR 75 million.

The continued long-term decline in graphic paper demand coupled with weakened economic outlook has prompted the company to take appropriate actions, which it believes, would ensure performance in UPM Communication Papers.

The closure of Kaipola paper mill is scheduled for end-2020, which in turn would impact nearly 450 positions and reduce 720,000 tonnes of graphic paper capacity. Further, the streamlining of business function teams across Europe and North America would impact nearly 170 positions spread across 10 countries.