UPM Paper to cut graphic paper capacity

UPM Paper is cutting its graphic paper production capacity in light of falling demand. "During the last years the demand for graphic papers has been declining - and the decline is expected to continue,” said Winfried Schaur, executive VP, UPM Paper ENA.

The company is closing paper machine 5 at UPM Blandin in Minnesota, US, reducing the annual capacity by approximately 128,000 tons of coated magazine paper in response to overcapacities in the North American paper market. The closure is expected to be completed by end of Q1 2018 the latest. Paper production related to paper machine 6 is planned to continue at the Blandin site. There are also plans to optimise operations at UPM Nordland Papier and UPM NorService units in Dorpen, Germany, Europe's biggest fine paper site.   In total 223 positions are estimated to be affected in Dorpen. At UPM Blandin, it is estimated that 150 positions will be affected. UPM said the restructuring will result in annual savings of approximately EUR 30 million.