UPM Closes Hürth Newsprint Mill and One Fine Paper Machine at Nordland Papier
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In May, UPM Communication Papers announced plans to permanently close its Hürth newsprint mill and shutdown of one fine paper machine at Nordland Papier in Dörpen (PM 3). Both mills are located in Germany.
The respective participation processes with the employee representatives have been concluded. The number of positions affected is 338.
Graphic paper production in Hürth is expected to end on 31 August 2024 and at Nordland Papier PM 3 latest by the end of 2024, resulting in annual reductions of 330,000 tonnes of newsprint paper capacity and 280,000 tonnes of uncoated fine paper capacity.
"In cooperation with the workers council, we have engaged in a constructive dialogue with the aim of developing responsible solutions for our employees," said Antti Hermonen, SVP, Operations, UPM Communication Papers. "The thoughtful and collaborative approach taken by all parties during the consultations resulted in socially responsible solutions for our people."
UPM said that graphic paper demand has continued to decline, reflecting the overall trend in paper consumption driven by digitalization. The decline in demand accentuated in 2023 and a durable recovery is not expected, resulting in significant overcapacity in the market.
The closures are estimated to result in annual fixed cost savings of EUR 45 million, UPM noted.
