UPM plans to reduce graphic paper capacity in Germany to align with customer demand and ensure competitiveness
May 29 2024 - 8:20AM
UPM plans to reduce graphic paper capacity in Germany to align with
customer demand and ensure competitiveness
(UPM, Helsinki, 29 May 2024 at 15:20 EEST) – UPM Communication
Papers plans to permanently close its Hürth newsprint mill and to
shut down one fine paper machine at Nordland Papier (PM 3) in
Dörpen, both assets located in Germany. If realized, the measures
would result in annual reductions of 330,000 tonnes of newsprint
paper capacity and 280,000 tonnes of uncoated fine paper capacity
in UPM’s portfolio. These plans are a continuation of necessary
steps to proactively align with customer demand and ensure
competitiveness.
Should the plans be implemented the number of positions affected
is estimated approximately at 135 in Hürth and 210 in Dörpen. The
participation process with the workers council will start
immediately in line with local legislation. Both paper machines
affected by the planned measure would stop graphic paper production
latest by the end of 2024. Production on the remaining paper
machines at Nordland Papier will continue as before.
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.
“In recent years, we have already responded to overcapacities in
the global paper markets with selective capacity reductions, always
considering the competitiveness of our business. The planned
closures would ensure an efficient and flexible use of our
remaining paper assets and will therefore enable UPM Communication
Papers to stay a reliable partner to our customers in the long run.
However, we are aware that today’s announcement is very difficult
news for our employees in Hürth and in Dörpen. We are committed to
conducting a fair dialogue with employee representatives to seek
responsible solutions for our workforce,” says Antti
Jääskeläinen, Executive Vice President, UPM Communication
Papers.
The plans announced today would strengthen the overall cost
competitiveness of UPM Communication Papers and are a prerequisite
for consistent, long-term paper operations. UPM would recognize
restructuring charges of EUR 113 million (EUR 68 million cash
impact and an impairment of EUR 45 million) as items affecting
comparability in its Q2 2024 result. The planned actions are
estimated to result in annual fixed cost savings of EUR 45
million.
For further information please contact:UPM
Communication Papers Stakeholder Relations, tel. +49 821 3109 225,
paperinfo@upm.com
For local information please
contact:Armin Schmidt, General Manager
UPM Hürth, tel. +49 2233 2006 101Klaus Reimann,
General Manager UPM Nordland Papier, tel. +49 4963 401 2117(best
available from 16:00-17:00 CET)
UPM, Media Relations Mon-Fri 9:00-16:00
EESTtel. +358 40 588 3284 media@upm.com
About UPM HürthUPM Hürth manufactures newsprint
papers with the annual capacity of 330,000 tonnes. Located in North
Rhine Westphalia, Germany the site employs around 135 people.
About UPM Nordland PapierUPM Nordland Papier
produces uncoated and coated office and printing papers as well as
specialty papers. The Dörpen paper mill is the largest of its kind
in Europe and produces up to 1.2 million tons of fine and specialty
paper annually. Located in Lower Saxony it employs approximately
1,150 people at the paper mill.
UPM Communication PapersAs a leading company in
the paper industry, we drive the value of paper as a sustainable
medium of trust, impact, learning and inspiration. UPM
Communication Papers offers the industry’s widest portfolio for
newspaper, magazine, marketing and book printing as well as for
home and office applications. Our high performing papers and
service concepts add value to our customers' businesses, while
actively fulfilling demanding environmental and social
responsibility criteria. With headquarters in Germany, UPM
Communication Papers employs approximately 6,000 people and has 11
modern paper mills globally. More about us and our products at
www.upmpaper.com
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UPMWe deliver renewable and responsible
solutions and innovate for a future beyond fossils across six
business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty
Papers, UPM Communication Papers and UPM Plywood. As the industry
leader in responsibility, we are committed to the UN Business
Ambition for 1.5°C and the science-based targets to mitigate
climate change. We employ 16,600 people worldwide and our annual
sales are approximately EUR 10.5 billion. Our shares are listed on
Nasdaq Helsinki Ltd. UPM Biofore – Beyond
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