UPM to Retire PM 3 at Ettringen, Restructure Operations at Three Mills
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UPM, Helsinki, Finland, reports that it will permanently shutdown PM 3 at its Ettringen paper mill in Bavaria, Germany, on December 14, because the mill has become uncompetitive. In addition, overlapping operations are being restructured in the supply chain, paper sales, and functions at the Ettringen mill, Plattling mill (Bavaria), and Hürth mill (Cologne, Germany).
The Ettringen paper mill, founded in 1897, produces uncoated magazine papers and newsprint, and employs 530 people. Its three production lines have a combined capacity of 600,000 metric tpy. The Hürth mill, which employs some 100 people, produces newsprint from 100% recycled fiber. Founded in 2002, it has a production capacity of 310,000 metric tpy. Founded in 1982, the Plattling mill, which employs 460 people, produces coated and uncoated magazine papers. Its three production lines have a combined capacity of 780,000 metric tpy.
The goal of the changes, the company says, is to improve the profitability and cost-efficiency of its paper business in Europe and to adapt the company's paper production to the needs of its global customer base. The restructuring measures will affect 54 people at Ettringen, 17 people at Plattling, and 7 people at Hürth. Personnel reductions will begin in January.
"The restructuring measures are extremely unfortunate for the affected employees. However, it's important to face the realities and to look ahead. UPM will support the affected employees in finding a new job," said Jyrki Ovaska, president, Paper Business Group.
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