Plattling mill in Germany to be shut down by UPM

UPM recently revealed that the company is planning to shut down its plattling mill located in Germany on a permanent basis. The company is one of the leading paper manufacturers, and this decision will reduce 595,000 tonnes per year in the production of both uncoated and coated magazine paper capacity in Europe. According to the company, this decision aligns with its strategic move to maintain its position in the competitive market and meet the rising demand for graphic paper capacity.

The company has disclosed that it will be closing down both of its paper producing unit in Plattling. This decision will lead to the reduction of approximately 380000 tonnes of uncoated along with 215000 tonnes of coated publication paper. By the end of this year, UPM will stop production. Currently, these production unit employs approximately 401 people, whose employability will get affected due to this decision.

According to UPM, the demand for writing and printing paper has consistently decreased over the past 15 years, and this trend is expected to persist. Moreover, the decrease in the requirement for papers this year is more significant. The energy supply is one of the factors that is essential for the long-term predictability of production factors. However, the uncertainty involved in the reliability of energy supply in Germany is currently a major challenging factor for the company.

UPM is now dedicated to maintaining cost-effective operations to meet the demand of graphic paper markets. As per Massimo Reynaudo, Executive Vice President of UPM statement, the company is analyzing for fair and responsible solutions for their employees in Plattling.

UPM is also planning to increase the cost competitiveness of its communication papers to ensure long-term viability. The company has disclosed the reconstructing plan that includes Euro 122 million, along with an impairment of Euro 100 million for a leased CHP plant.

According to Procurement Resource, UPM is shutting down its Plattling mill in Germany. This decision is taken due to the decreasing demand for writing and printing paper. It is expected that the shutting down of the Plattling unit will reduce production of papers in Europe by 595,000 tonnes per year.