Production paper

Upm plans to reduce its coated mechanical paper capacity in Germany

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Upm has recently announced its plan 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 LWC (Light Weight Coated). The company explained that over the last ten years it has reacted to the global market decline and adapted its production capacity in an attempt to maintain competitiveness. Among its European machines, the paper machine 10 at Plattling had both the lowest production capacity and the highest technological obsolescence. Paper production on paper machines 1 and 11 is planned to continue at the Platting plant. The total production capacity of the paper mill, including PM 10, is 785 000 tons LWC and SC (i.e. Supercalandered) paper annually. PM 1 produces up to 405 000 tons SC paper annually, while 11 has an annual production capacity of about 225 000 tons LWC paper. The company announced that the PM 10 has mainly produced offset LWC paper. The machine is planned to be closed after the employee consultation process is finalized. In total 160 positions would be affected by the plans at UPM Plattling.  UPM announced that it will recognize restructuring charges of approximately Euros 30 million as items affecting comparability in its Q2 2019 results. The closure of both machines would bring about annual savings of about 17 million Euros.