UPM Communication Papers plans to reduce coated mechanical paper capacity in Germany
April 02 2019 - 4:35AM
(UPM, Helsinki, 2 April
2019 at 11:35 EET) - UPM plans to permanently close paper machine
10 at UPM Plattling, Germany, reducing the annual capacity of
coated mechanical paper in Europe by approximately 155,000 tons.
Paper production on paper machines 1 and 11 is planned to continue
at the mill site.
In total 160 positions
would be affected by the plans at UPM Plattling. The employee
consultation process will start in the course of April in line with
local legislation. The machine is planned to be closed after the
consultation process will have been finalized.
"Paper markets globally
have been declining consistently over the past 10 years. UPM
Communication Papers has responded to this development by selective
capacity reductions, always considering the competitiveness of our
business - and we will continue to do so also in future. The
planned closure announced today is in line with this approach and
focuses on maintaining the most modern and competitive assets,"
says Winfried Schaur, Executive Vice
President, UPM Communication Papers.
"UPM Communication
Papers has maintained the position of a leading supplier of
magazine papers globally. Among our European coated mechanical
machines Plattling PM 10 has both the lowest capacity and the
highest technical age. We adjust our capacity to remain a reliable
partner to our customers and will engage in a fair dialogue with
employee representatives. At the same time, we will continue
delivering products of the highest quality and full service at all
times during this process," says Ruud van den
Berg, Senior Vice President, Magazines, Merchants and Office
Business at UPM Communication Papers.
UPM will recognize
restructuring charges of approximately EUR 30 million as items
affecting comparability in its Q2 2019 results. The planned actions
would result in annual savings of approximately EUR 17 million.
For
further information please contact:
UPM Communication Papers Stakeholder Relations, tel. +49 821 3109
225, paperinfo@upm.com
For
local information please contact:
Mika Kämpe, General Manager, UPM Plattling,
tel. +49 9931 89606502
(best available from 14:30-15:30 CET)
UPM, Media
Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com
About
UPM Plattling
UPM Plattling manufactures graphic papers with the annual capacity
of 785,000 tonnes. Located in Bavaria, Germany the mill employs
about 590 people.
About
UPM Communication Papers
UPM Communication Papers is the world's leading producer of graphic
papers, offering an extensive product range for advertising and
publishing as well as home and office uses. The high performing
papers and service concepts of UPM add value to our customers'
businesses, while actively fulfilling demanding environmental and
social responsibility criteria. With headquarters in Germany, UPM
Communication Papers employs approximately 8,000 people. More about
UPM Communication Papers and its products at www.upmpaper.com
UPM
We deliver renewable and responsible solutions and innovate for a
future beyond fossils across six business areas: UPM Biorefining,
UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication
Papers and UPM Plywood. We employ around 19,000 people worldwide
and our annual sales are approximately EUR 10.5 billion. Our shares
are listed on NASDAQ OMX Helsinki. UPM Biofore - Beyond fossils.
www.upm.com
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This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: UPM via Globenewswire
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