UPM to Shut German Paper Mill in Response to Market Shifts

UPM announced plans to permanently close its Ettringen paper mill in Germany, affecting 462 jobs. This move follows a shift in focus towards packaging and tissue products due to declining demand for traditional paper. The closure aims to save 39 million euros annually.

In a strategic move responding to market pressures, Finland's UPM announced on Tuesday plans to permanently close its paper mill in Ettringen, Germany, resulting in 462 job losses. The closure is part of broader cost-cutting measures across several countries, attributed to overcapacity and shifting demand in the industry.

The paper industry is experiencing a transformation, with companies like UPM adjusting their production focus from traditional printing and writing paper to cardboard, packaging materials, labels, and tissue paper. This shift comes as demand for conventional paper products continues to decline.

UPM aims to achieve annual savings of 39 million euros through these measures, which also include cost cuts in Germany, the United States, Finland, and Scotland. To facilitate the restructuring, UPM will record charges of 74 million euros in its first-quarter financial results.

(With inputs from agencies.)