UPM Communication Papers plans to close the Hürth newsprint mill and shut down a fine paper machine at Nordland Papier (PM 3) in Dörpen, Germany. This move will reduce UPM’s annual capacity by 330,000 tonnes of newsprint paper and 280,000 tonnes of uncoated fine paper. These measures aim to align with customer demand and ensure competitiveness.
If implemented, approximately 135 positions in Hürth and 210 in Dörpen will be affected. The participation process with the workers council will start immediately, and the affected machines are expected to cease production by the end of 2024. Production on other machines at Nordland Papier will continue unchanged.
The decline in graphic paper demand, driven by digitalization, has intensified, especially in 2023. A significant recovery is not anticipated, leading to market overcapacity.
Antti Jääskeläinen, Executive Vice President of UPM Communication Papers, stated, “We have responded to global paper market overcapacities with selective reductions, ensuring business competitiveness. The planned closures will allow efficient use of remaining assets and help us stay a reliable partner to our customers. We are committed to fair dialogue with employee representatives for responsible solutions.”
UPM plans to recognize restructuring charges of Euro 113 million (Euro 68 million cash impact and Euro 45 million impairment) in its Q2 2024 results. The actions are estimated to save Euro 45 million annually in fixed costs.
