UPM has decided to close 305,000 tonnes of graphic paper capacity in Europe. The company permanently closes the paper machine 3 at UPM Steyrermühl, Austria and the paper machine 2 at UPM Augsburg, Germany.
The employee consultation processes were conducted in line with the local legislations and have now been finalised. The number of persons affected is 143 for UPM Augsburg and 125 for UPM Steyrermühl.
The SC paper machine 3 in Steyrermühl will be permanently closed at the end of 1Q 2017. In Augsburg the production on the SC paper machine 2 was stopped already in the end of 2016. Both mill sites continue their paper production on the remaining cost-competitive paper machines.
The closure of both machines would result in annual cost savings of approximately Euro 30 million. UPM booked charges of Euro 64 million as an item affecting comparability in 4Q 2016.
