UPM Ends Coated Magazine Paper Production at Stracel Mill in France
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UPM, Finland, reports that it ceased production of coated magazine paper at its Stracel mill in France on January 4. It also said that it has finalized the employee information and consultation process with the Central Workers' Council of UPM France and the Workers' Council of the Stracel mill.
The consultation process was started in July 2012. The process is part of UPM's asset review announced on Aug. 31, 2011, aimed at adjusting the company's magazine paper capacity to match the needs of its global customer base.
Current customers of the UPM Stracel mill will be served from other UPM mills. The UPM Stracel mill has been producing 270,000 metric tpy of coated magazine paper grades. It has 250 employees.
As the next step, UPM will continue negotiations for the sale of assets and part of the land of the Stracel mill to the joint venture created by VPK Packaging Group and Klingele Papierwerke.
"We have taken the necessary time needed to find the best possible solution for the Stracel mill and its employees. The process was done together with all relevant stakeholders and we want to thank them all for their cooperation" says Jyrki Ovaska, president of UPM Paper Business Group.
"The project of VPK and Klingele to convert the mill into a recycled fiber-based containerboard mill is serious and provides an option to create a new industrial future for the Stracel site and for a number of its employees. The aim is to conclude these negotiations as soon as possible," Ovaska said.
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