UPM to Close Madison Paper Industries in Maine by End-May
The Madison mill has the capacity to produce 195,000 tons per year of supercalendered (SC) paper.
March 16, 2016 - UPM-Kymmene Inc. and Northern SC Paper Corp. announced [on March 14] the dissolution of their partnership, Madison Paper Industries, located in Madison, Maine (USA). As a result, the partnership's paper business will end and paper production at the mill is expected to conclude by the end of May at the latest.
Hydro power assets located at the mill site will be sold, UPM said.
The Madison mill has the capacity to produce 195,000 tons per year of supercalendered (SC) paper and has approximately 214 employees located at the mill site.
According to UPM, some employees will remain beyond May to maintain buildings, operate the hydro generating facilities and support activities related to the closing. All employment related actions will be handled in accordance with federal and state statutory requirements.
"Despite everyone's best efforts, the difficult decision has been made to cease paper production at Madison,” said Ruud van den Berg, Senior Vice President of UPM Paper ENA. “Demand for SC papers declined significantly in 2015 and the decline is expected to continue. The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past."
Northern SC Paper Corp. is a subsidiary of the New York Times Company.
UPM Paper ENA (Europe & North America) is the world's leading producer of graphic papers, serving customers in Magazine Publishing & Advertising, Merchants, Home & Office, and Newspaper Publishing. To learn more, please visit: www.upm.com