Georgia-Pacific to Close Memphis Cellulose Mill and Memphis Technology and Innovation Center

October 20, 2025 - Georgia-Pacific on Oct. 16 announced that the company will permanently close the Memphis Cellulose mill and the Memphis Technology and Innovation Center in Tennessee.

The Memphis Cellulose plant produces cotton linter pulp, which is used for a wide variety of products requiring high purity cellulose as a raw material. End uses include specialty plastics, paints and coatings, and specialty papers used in the medical, artist and filtration industries.

The closures impact approximately 130 employees at the cellulose mill, and 22 employees at the Technology and Innovation Center.

The company expects that most positions at the mill and technology center will be eliminated by early December.

Georgia-Pacific said its focus in the coming weeks and months is to continue to safely operate while supporting our employees during the transition. The company will work with affected employees who are interested in transitions to other opportunities within the company, other Koch companies or opportunities outside of the company. Georgia-Pacific is committed to supporting employees in finding employment through job fairs and placement services or other available resources.

The company will be working cooperatively with local union leadership to begin bargaining the effects of this decision, as written in the contract. The state of Tennessee will determine unemployment benefits, and Georgia-Pacific will cooperate with that process. The company will ensure that all employees are paid all earned wages and agreed upon benefits at the time of their discharge.

In a press release, Georgia-Pacific stated, "This decision is in the best interest of the GP Cellulose business and is not a reflection on the quality of work of the Memphis team. This decision was influenced by various factors, including challenging market conditions for the facility's products.

"Georgia-Pacific considered all available options, including selling the mill. It is our intent to leave the mill and other facilities in a sellable condition for some time should there be an interested buyer following this announcement.

"Our focus is to continue to safely operate while supporting our employees during this transition and working with customers to finalize commitments," the company concluded.

Headquartered in Zug, Switzerland, GP Cellulose operates state-of-the-art pulp mills in the southeastern United States and has sales offices strategically located in Switzerland,the United States, Uruguay and Hong Kong. The company's brands include Golden Isles® fluff and Golden Isles CO®.

SOURCE: Georgia-Pacific

Sappi to Shut PM 2 at Kirkniemi Mill in Finland, Coated Paper Capacity Reduced by 175,000 Tonnes

Oct. 9, 2025 - Sappi Europe announced in August the commencement of a consultation process for the potential closure of Paper Machine 2 at its Kirkniemi Mill in Lohja, Finland. The consultation process, aimed at improving the mill's profitability and cost competitiveness, has been completed resulting in the planned closure of Paper Machine 2 by the end of the calendar year 2025. As a result, Sappi's annual production capacity of coated mechanical paper will be reduced by 175,000 tonnes.

The closure will lead to a reduction of 93 positions. Some of the redundancies will be managed through retirement arrangements. Sappi is committed to supporting all affected employees through the transition. A dedicated service point has been established at the mill in cooperation with the local employment office, and all impacted employees will be offered individual career transition coaching.

"While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements," said Misa Bursac, VP Manufacturing, R&D and Technology. "This step is part of our broader commitment to optimising our operations, enhancing sustainability, and ensuring the long-term competitiveness of Sappi Europe. By consolidating production on Kirkniemi's remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations and ultimately our industry."

The shutdown of Paper Machine 2 is part of Sappi's strategic plan to align production capacity with market demand and to optimise the utilisation of the mill's remaining paper machines. Production of Paper Machine 2 grades will be transferred to Kirkniemi's Paper Machines 1 and 3, which will continue operating. Deliveries to customers will continue without disruption.

About Kirkniemi Mill

Kirkniemi Mill, with 550 employee, produces coated paper for heatset web offset printing serving mainly the high-volume print market. Its papers are used to create catalogues, brochures and publications.

The mill's three paper machines have the capacity to produce 750,000 tons per year of high-quality Galerie and Magno web papers, which are tailored to high-quality publishing and advertising end-uses. Kirkniemi Mill also produces 300,000 tons per year of bleached mechanical pulp for its own consumption. More than 90% of our mill production is exported.

Headquartered in Brussels, Belgium, Sappi Europe is the leading European producer of coated graphic paper as well as packaging and speciality papers.

SOURCE: Sappi Europe

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