UPM has formally announced the permanent end of paper production in its Kaukus mill in Finland. The company first announced plans to permanently end paper production in Kaukas in July, with the stated aim of shifting its coated mechanical paper production in Finland to the UPM Rauma mill. Paper Machine 1 in Kaukas will now be permanently closed during Q4, impacting 220 employees. Following the closure, coated mechanical paper production capacity will be reduced by 300,000 tonnes annually. UPM has announced that employee consultation processes for those affected by the closure have now been completed. The pulp, sawn timber, and biofuels production at UPM Kaukas will reportedly continue as before, as well as its R&D activities. Matti Laaksonen, general manager of UPM’s Kaukas and Kymi mills, says: “The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees. “As part of the process, we agreed to implement a ‘from-jobto-job’ programme, which has been UPM’s established model for change support since 2006. The last few weeks have not been easy for any of us.” UPM Adhesive Materials also announced plans to shut down its label materials production in Nancy, France, in order to centralise its label material production to more cost-effective units. According to the company, the decision was driven by overcapacity, resulting from “exceptional market developments during the past few years.” The plans could affect up to 82 jobs at the company. The closure of Paper Machine 2 at Sappi’s Kirkniemi mill, also in Finland, is part of the company’s strategic plan to align production capacity with market demand. Paper manufacturer, Sappi Europe, has confirmed the closure of Paper Machine 2 at its Kirkniemi mill in Lohja, Finland, reducing its annual production capacity of coated mechanical paper by 175,000 tonnes and leading to the loss of 93 jobs. The announcement follows the commencement of a consultation process in August aimed at improving the mill’s profitability and cost competitiveness. The shutdown is part of Sappi’s strategic plan to align production capacity with market demand and to optimise the utilisation of the mill’s remaining paper machines. The closure of Paper Machine 2 is due by the end of 2025, with remaining output transferred to Paper Machine 1 and 3 at the Kirkniemi mill, which will both continue operating. Sappi has said that some of the redundancies will be managed through “retirement arrangements,” with the company committing to support all affected employees through the transition. A dedicated service point has reportedly been established at the mill in cooperation with the local employment office, with all impacted employees offered individual career transition coaching. In its statement on the shutdown, Sappi Europe says that “deliveries to customers will continue without disruption.” Misa Bursac, vice president of manufacturing, R&D, and technology at Sappi Europe, adds: "While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements. “This step is part of our broader commitment to optimising our operations, enhancing sustainability, and ensuring the long-term competitiveness of Sappi Europe. By consolidating production on Kirkniemi’s remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations and ultimately our industry." Sappi confirms paper machine shutdown Sappi has committed to support all employees being made redundant MATERIALS | NEWS Jonathan Pert printmonthly PrintMonthlyMagazine printmonthly_signlink 16 website: www.printmonthly.co.uk November | December 2025 - Issue 357 UPM permanently halts paper production in Kaukus mill Jonathan Pert Pulp, sawn timber, and biofuels production will continue at the mill as was before
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