UPM to Permanently Close Docelles Fine Paper Mill in France

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UPM, Finland, will permanently close its Docelles paper mill in France. Employee information and consultation negotiations were completed last month and the Social Plan was approved by French authorities this past week. The Docelles mill employs 161 people.

The plan of sale or other exit of the UPM Docelles mill was originally announced on January 17, 2013. It is part of UPM’s plan to adjust its graphic paper capacity and support operations to match the declining demand in Europe. Production at the mill will cease by the end of this month. With the closure of Docelles, UPM will reduce its fine paper capacity by a total of 160,000 metric tpy.

"UPM has been conducting an active search for a buyer that could offer a credible future for the mill. Unfortunately, this search did not result in a binding, credible offer for the mill. However, UPM is still open to consider the sale of Docelles mill machinery and property," said Petteri Kalela, SVP of UPM Paper ENA.

UPM booked charges of EUR 25 million as special items in Q4/2013 operating profit related to the restructuring of the Docelles mill.

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