UPM will permanently close its Plattling mill in Germany, reducing the uncoated and coated publication paper capacity by 595,000 tonnes in Europe. The company says the plans are a continuation of necessary steps to proactively ensure competitiveness of its operations and align graphic paper capacity to a profitable customer demand. Source: Timberbiz
Once implemented the number of UPM employees affected in Plattling is estimated at 401.
The planned closure of UPM Plattling’s two paper machines would lead to a permanent reduction of 380,000 tonnes of uncoated publication paper and 215,000 tonnes of coated publication paper. Both paper machines are planned to stop graphic paper production by the end of 2023.
During the past 15 years the demand for graphic papers has been declining constantly and this trend is expected to continue. The decline in demand has been accentuated significantly over the course of this year. Furthermore, the long-term predictability of production factors, such as energy supply, is essential to our industry. The uncertainty about reliability and cost competitiveness of the energy supply in Germany is currently a big challenge.
“Mature graphic paper markets require continuous and relentless efforts to ensure cost competitive operations that also meet the future customer demand. UPM is committed to leading our business in a responsible manner. We respect the interests of both our workforce and our customers and consider them a central part of our plans. We recognize that today’s announcement is very difficult news for our employees in Plattling. Together with the employee representatives, we will seek responsible solutions for our personnel and enter directly into a fair dialogue,” said Massimo Reynaudo, Executive Vice President, UPM Communication Papers.
