UPM to Sell Schwedt Newsprint Mill to LEIPA for EUR 70 Million
LEIPA plans to eventually convert the newsprint mill's production to 450,000 tonnes per year of linerboard.
May 3, 2016 - UPM announced on April 26 that it signed an agreement to sell its Schwedt newsprint mill site in Germany and relevant assets to LEIPA Georg Leinfelder GmbH for EUR 70 million.
Currently, the mill has the capacity to produce 280,000 tonnes per year of newsprint, but LEIPA plans to eventually convert the mill's production to 450,000 tonnes per year of linerboard.
As part of the deal, the parties have entered a manufacturing agreement whereby newsprint would be produced by the mill for a transition period that would end no later than the close of 2017.
“With this transaction UPM and LEIPA will have an improved opportunity to develop their businesses to meet the market needs. LEIPA is a solid and successful player in the liner business,” said Winfried Schaur, Executive Vice President, UPM Paper ENA.
“The negotiations with LEIPA have proceeded well and we believe that the transaction will bring benefits to the employees in the form of future employment at a converted site,” Schaur added.
The entire personnel of Schwedt mill — about 240 people — will transfer to LEIPA as old employees.
The transaction is subject to customary third party approvals.
UPM continues to produce newsprint at its Chapelle, Kaipola, Hürth, Schongau, Shotton and Steyrermühl mills.
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