UPM Permanently Ceases Production of Coated Magazine Paper at Stracel Mill

UPM's Stacel Mill in France.

Jan. 7, 2013 - UPM said that on January 4 it permanently ceased production of coated magazine paper at its Stracel mill in France after finalizing the employee information and consultation process with the Central Workers’ Council of UPM France and the Workers’ Council associated with the mill.

The consultation process, which began in July of 2012, is part of UPM’s asset review announced on August 31, 2011 that focuses on adjusting the company’s magazine paper capacity to match the needs of its global customer base.

Current customers of the Stracel mill will be served from other UPM mills, the company said.

UPM's Stracel mill has been producing 270,000 tonnes per year of coated magazine paper grades. The mill has 250 employees.

Moving forward, UPM said that it will continue with negotiations of the sale of assets and part of the land of the Stracel mill to the joint venture created by VPK Packaging Group and Klingele Papierwerke.

“We have taken the necessary time needed to find the best possible solution for the Stracel mill and its employees. The process was done together with all relevant stakeholders and we want to thank them all for their cooperation,” said Jyrki Ovaska, President of UPM Paper Business Group.

“The project of VPK and Klingele to convert the mill into a recycled fibre based containerboard mill is serious and provides an option to create a new industrial future for the Stracel site and for a number of its employees, Ovaska explained. "The aim is to conclude these negotiations as soon as possible.”