UPM Ends Kaukas Paper Production, Completes Employee Consultations
- UPM will close Paper Machine 1 in Kaukas during Q4.
- The closure will reduce personnel by 220 and production by 300,000 tonnes annually.
- UPM's pulp, sawn timber, biofuels, and R&D at Kaukas will continue.
- An after-care team will ensure safe conditions post-closure.
Closure Announcement
UPM has announced the permanent closure of Paper Machine 1 at its Kaukas mill, with operations ceasing during the fourth quarter. This decision follows the completion of employee consultation processes.
Impact on Production and Workforce
The closure will result in a reduction of 220 personnel and a decrease in coated mechanical paper production capacity by 300,000 tonnes annually. Despite these changes, UPM will continue its pulp, sawn timber, biofuels production, and R&D activities at the Kaukas site.
Employee Support and Safety Measures
UPM has implemented a from-job-to-job program to support affected employees, a model in place since 2006. An after-care team will be established to ensure safe conditions at the mill following the closure.
Management Remarks
Matti J. Laaksonen, General Manager of Kaukas and Kymi mills, emphasized the constructive nature of the consultations and the focus on mitigating the impact on employees. He acknowledged the efforts of the Kaukas paper mill team in maintaining stable operations during this challenging period.
Source: UPM