UPM Paper ENA (Europe and North America), Germany, reports that it has decided to close 305,000 metric tpy of graphic paper capacity in Europe. The company will permanently close PM 3 at UPM Steyrermühl, Austria (photo), and PM 2 at UPM Augsburg, Germany. The decision is based on the plan announced in November 2016. 

 

The employee consultation processes were conducted in line with the local legislations and have now been finalized. The number of persons affected is 143 for UPM Augsburg and 125 for UPM Steyrermühl. The SC PM 3 in Steyrermühl will be permanently closed at the end of Q1 2017. In Augsburg the production on the SC PM 2 was already stopped at the end of 2016. Both mill sites continue their paper production on the remaining cost-competitive paper machines.

"We understand the disappointment of our employees in Steyrermühl and Augsburg. Due to adverse market conditions continuously challenging us, we have to adjust our operations to meet the demand and to ensure a competitive future of our remaining paper assets. We conducted constructive and fair employee consultation processes at both mills, to diminish the impact of the closures on the personnel," said Anu Ahola, SVP, News & Retail, UPM Paper ENA. 

The closure of both machines would result in annual cost savings of approximately EUR 30 million, the company reported. UPM booked charges of EUR 64 million as an item affecting comparability in Q4 2016.