UPM announced plans to adjust its non coated cultural paper production capacity to meet long-term profitable customer demand.

(1) The company plans to permanently close Unit 6 of the Schongau factory in Germany and reduce the annual production capacity of uncoated cultural paper by 165000 tons by the end of the second quarter of 2023.

(2) The company has advanced the shutdown of the Steyrerm ü hl factory announced earlier by six months. By the end of the second quarter of 2023, newsprint with a total annual production capacity of 320000 tons will be withdrawn.

The production of Schongau’s cost competitive machines 7 and 9, as well as UPM’s other four uncoated cultural paper units in Germany and Finland, will continue, with a total annual capacity of 1800000 tons.

If the plan is implemented, the total number of personnel at UPM Schongau is estimated to decrease by 135.

The COVID-19 has reduced the demand for cultural paper in Europe, but the high inflation in 2022 has brought unprecedented fluctuations in the market. Now, market volatility is receding, and cultural paper is resuming its long-term trend of declining demand, which has continued for more than a decade.