UPM Paper ENA plans to reduce 305,000 tonnes of graphic paper capacity in Europe
(Thomson Reuters ONE) -
(UPM, Helsinki, 3 November 2016 at 11:30 EET) - UPM is planning to permanently
reduce its graphic paper capacity in Europe by 305,000 tonnes. The capacity
reductions are planned to take place in Austria and Germany.
UPM plans to permanently close two paper machines:
* SC paper machine 3 at UPM Steyrermühl, Austria
* SC paper machine 2 at UPM Augsburg, Germany
Number of persons affected by the plan is estimated 150 for UPM Augsburg and
125 for UPM Steyrermühl. The employee consultation processes will start in the
course of November in line with the local legislation. The machines are planned
to be closed after the consultation processes have been finalized.
The plan would result in annual cost savings of about EUR 30 Million. UPM would
book charges of approximately EUR 75 Million as an item affecting comparability
in Q4 2016. Of the total, approximately EUR 45 Million would be cash costs.
According to the plan both mills would continue paper production on the
remaining cost-competitive paper machines at the mill sites.
"The demand for SC papers, in line with other graphic papers, has been declining
during the last years and the decline is expected to continue. Even under
challenging market conditions our employees have always given their best and we
regret the impact of the planned closures on the personnel. However, we have to
adjust our operations to match with long-term customer demand," says Winfried
Schaur, Executive Vice President, UPM Paper ENA.
"Due to the adverse market conditions we have conducted a thorough analysis on
the cost competitiveness of our graphic paper machines. Because of their scale,
technical age and limited further savings potential PM3 in Steyrermühl and PM2
in Augsburg are the least competitive SC PMs in UPM's machine park. The planned
closures would ensure an efficient use of our remaining five SC paper machines,"
says Anu Ahola, Senior Vice President, News & Retail, UPM Paper ENA.
Earlier this year UPM sold its Schwedt mill. The annual production of 282,000
tonnes of newsprint will be ceased in the end of Q3 2017. The new owner will
convert the mill into liner production.
For further information please contact:
UPM Paper ENA Stakeholder Relations, tel. +49 821 3109 225, email:
paperinfo(at)upm.com
For local information, please contact:
Ernst Spitzbart, General Manager, UPM Steyrermühl, UPM Paper ENA, (best
available from 14:30-15:30 CET) tel. +43 7613 8900 359
Gerhard Mayer, General Manager, UPM Augsburg, UPM Paper ENA, (best available
from 14:30-15:30 CET) tel. +49 821 3109 509
UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media(at)upm.com
About UPM Steyrermühl
UPM Steyrermühl manufactures newsprint and uncoated magazine papers (SC) with
the annual capacity of 485,000 tonnes. Located in Upper Austria the mill employs
about 400 people.
About UPM Augsburg
UPM Augsburg manufactures coated (LWC) and uncoated magazine papers (SC) with
the annual capacity of 498,000 tonnes. Located in Southern Germany the mill
employs about 440 people.
About UPM Paper ENA
UPM Paper ENA (Europe and North America) is the world's leading producer of
graphic papers, offering an extensive product range for advertising and
publishing as well as home and office uses. The high performing papers and
service concepts of UPM add value to our customers' businesses, while activity
fulfilling demanding environmental and social responsibility criteria. With
headquarters in Germany, UPM Paper ENA employs approximately 9,000 people. More
about UPM Paper ENA and its products at www.upmpaper.com
About UPM
Through the renewing of the bio and forest industries, UPM is building a
sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM
Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. Our products are
made of renewable raw materials and are recyclable. We serve our customers
worldwide. The group employs around 19,600 people and its annual sales are
approximately ? 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM -
The Biofore Company - www.upm.com
Follow UPM on Twitter | LinkedIn | Facebook | YouTube | Instagram |
upmbiofore.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: UPM via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 03.11.2016 - 10:30 Uhr
Sprache: Deutsch
News-ID 504709
Anzahl Zeichen: 5095
contact information:
Town:
Helsinki
Kategorie:
Business News
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