UPM Ending Coated Mechanical Paper Production at Kaukas Mill in Finland

Oct 3, 2025 - UPM today said that employee consultation processes have now been completed at the company's Kaukas paper mill in Lappeenranta, South East Finland, and UPM will permanently end paper production at the mill during Q4 2025.

The production of pulp, sawn timber and biofuels, along with R&D activities at the integrated Kaukas site will continue as before.

The reduction of personnel is 220.

In July, UPM first announced the plans to cease paper production at Kaukas Mill. The mill operates one paper machine, PM1, which has the capacity to produce 300,000 tonnes per year of coated mechanical paper.

UPM plans to shift its coated mechanical paper production in Finland to UPM Rauma mill.

"The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees," said Matti J. Laaksonen, General Manager, Kaukas and Kymi mills. "As part of the process, we agreed to implement a from-job-to-job program, which has been UPM's established model for change support since 2006.

"The last few weeks have not been easy for any of us. Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure," Laaksonen concluded.

To ensure safe conditions at the mill following the closure, an after-care team will be in place, UPM noted.

UPM Communication Papers offers a wide portfolio for newspaper, magazine, marketing and book printing as well as for home and office applications. The division employs around 5,000 people and operates 10 modern paper mills globally with an annual production capacity of 4.3 million tonnes of graphical paper.

SOURCE: UPM

Metsä Group Initiating Statutory Negotiations to Improve Profitability; 800 Jobs in Jeopardy

Oct. 2, 2025 - On 31 July 2025, Metsä Group announced it would launch the planning of a EUR 300 million cost savings and profit improvement program. Planning is now complete, and Metsä Group will initiate statutory negotiations concerning its personnel as part of it.

"Our profitability has been undermined by three factors. First, increased uncertainties in global trade have reduced demand for our products. Second, changes in exchange rates have weakened our result and will continue to do so. Third, the increase in raw material costs and the general cost level has eroded our profitability," said Jussi Vanhanen, President and CEO of Metsä Group.

"We operate in a capital-intensive business in which lower utilization rates due to weak demand combined with clearly higher costs create an unsustainable equation that must be addressed," Vanhanen added.

When planning the cost savings program, attention was paid to procurement and logistics costs, and the wood supply chain's efficiency. These account for a considerable share of the planned savings. In addition, the need to restructure and streamline operations to reduce fixed costs was recognized. Significant efficiency enhancement measures were also identified in variable costs.

"Our employees have done good work within our current operating model. Unfortunately, it isn't enough in this situation. We must tackle the things that are in our own hands and shape our operations to ensure long-term competitiveness," Vanhanen said.

According to preliminary assessments, the planned measures may lead to a permanent reduction of 800 permanent jobs. A significant share — 540 jobs — are expected to be in Finland. In addition to redundancies, the planned changes may lead to changes in duties.

Statutory negotiations with personnel representatives will be initiated in accordance with each country's legislation. Metsä Group employs approximately 9,600 people globally, of whom 5,600 are in Finland. The planned reductions at Metsä Board, a listed company part of Metsä Group, are included in these figures.

The negotiations will not include permanent closures of production units. The development of Metsä Group's new business projects (Muoto, Kuura, lignin and bio-based CO2 capture) will continue according to each project's individual plan and schedule.

Cost provisions related to the cost savings and profit improvement program will be recorded in the result for the last quarter of the year.

Metsä Group has its roots in the Finnish forests: our parent company Metsäliitto Cooperative is owned by over 90,000 forest owners. The Group focuses on wood supply and forest services, wood products, pulp, paperboards, and tissue and greaseproof papers.

SOURCE: Metsä Group

UPM Initiates Strategic Review of UPM Plywood Business Area

Sept. 23, 2025 - UPM-Kymmene Corporation's Board of Directors has decided to initiate a strategic review of UPM Plywood business area to assess options for maximizing the long-term potential of the business in an evolving market environment.

According to UPM, the strategic review includes a range of possibilities, including a potential separation from UPM through, for example, a divestment, partial demerger or initial public offering. The aim is to determine the best path forward for the Plywood business.

"UPM has transformed into a material solutions company with a broad portfolio of attractive businesses," said Massimo Reynaudo, President and CEO of UPM. "We continuously evaluate opportunities across the portfolio to ensure full value creation potential. The decision to initiate a strategic review of UPM Plywood reflects our commitment to position each UPM business for long-term success."

Tuija Suur-Hamari, Executive Vice President, UPM Plywood, noted, "UPM Plywood is a strong, customer-focused business with a clear strategy and a proven ability to perform under varying market conditions. With the efficient production, robust in-house capabilities, and a well-established commercial model, we focus on delivering value to our stakeholders through the trusted WISA® brand and our long-standing customer relationships."

During the strategic review process, UPM remains fully committed to the Plywood business and its customers.

The review is expected to be concluded by the end of 2026.

About UPM Plywood

UPM Plywood offers high-quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. In 2024, UPM Plywood sales were EUR 430 million and it has around 1,600 employees.

UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers.

SOURCE: UPM

Wood Pulp Imported to U.S. Added to Duty-Free List Under New Executive Order

Sept. 12, 2025 - The American Forest and Paper Association (AF&PA) announced that on September 5, President Trump signed an Executive Order (EO) making changes to EO 14257 from April. The new EO outlines what products and materials can enter the U.S. duty-free (zero percent tariffs). Three wood pulp tariff codes were added to the list.

Pursuant to this new EO, imported wood pulp will come into the U.S. duty-free — an important development in the long-term trade and tariff policy discussion.

This new list is meant to capture products and materials that are not produced in the U.S. — or not produced at scale. AF&PA has continuously made this argument for specific kinds of wood pulp, such as bleached eucalyptus kraft or BEK.

What's Next?

The EO also added a variety of items to Annex III, which will act as a 'potential' list of items that could be added to the duty-free list in the future, depending on trade talks. Importantly, this new EO also delegates authority to add items to the duty-free list to USTR and Commerce.

About AF&PA

The American Forest & Paper Association (AF&PA) serves to advance public policies that foster economic growth, job creation and global competitiveness for a vital sector that makes the essential paper and packaging products Americans use every day.

The U.S. forest products industry employs more than 925,000 people, largely in rural America, and is among the top 10 manufacturing sector employers in 44 states. Our industry accounts for approximately 4.7% of the total U.S. manufacturing GDP, manufacturing more than $435 billion in products annually. AF&PA member companies are significant producers and users of renewable biomass energy and are committed to making sustainable products for a sustainable future through the industry's decades-long initiative — Better Practices, Better Planet 2030.

SOURCE: AF&PA