UPM Permanently Cuts 485,000 Tonnes of Graphic Paper Capacity in Europe

June 28, 2023 - UPM has decided to close 485,000 tonnes of graphic paper capacity in Europe. The company permanently closes paper machine 6 at UPM Schongau, Germany, and paper machine 4 at UPM Steyrermühl, Austria. The decision is based on the plans announced in June 2022 and in March 2023.

The employee consultation process in Schongau was conducted in line with local legislations and has now been finalized. The number of persons affected is 136 for the site. The uncoated publication paper machine 6 will be permanently closed today.

UPM Schongau continues graphic paper production on the remaining cost-competitive machines.

"We held constructive and fair employee discussions to reduce the impact of the paper machine closure on our personnel. Together with the employee representatives, we focused on countering the circumstances, primarily through partial retirement measures," said Wolfgang Ohnesorg, General Manager, UPM Schongau.

"Additionally, we took the opportunity to implement structural changes to make our site fit for future challenges. I would like to express my sincere thanks to our entire workforce, which has managed to transfer all paper grades previously produced on PM 6 to PM 9 in such a short time frame," Ohnesorg concluded.

UPM Communication Papers ended the newspaper production at its Steyrermühl mill today. As already communicated in March 2023 we thereby accelerate the plans to ensure competitive production at our remaining newsprint paper machines in Europe. This decision will have no impact on the plans for the Steyrermühl site and its employees as communicated on 21 June 2022.

Ernst Spitzbart, General Manager, UPM Steyrermühl, said, "I admire the professionalism and flexibility of our employees, who are already working conscientiously to integrate UPM Steyrermühl into the Heinzel Group. The new owner will take over the responsibility for the site and thus also for the employees after the closing of the transaction is completed at the beginning of 2024."

UPM delivers renewable and responsible solutions and innovates for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood.