Oct. 18, 2021 - UPM has signed an agreement to sell its Chapelle Darblay newsprint mill site in Grand-Couronne, France, to a consortium of two partners Samfi and Paprec France SAS. The transaction is subject to customary approvals.
The sale of Chapelle mill is an asset sale, and no personnel will be transferred. UPM permanently ceased production at the mill and agreed to a social plan for its employees in June of 2020.
The Chapelle mill was founded in 1927 and had an annual production capacity of 240.000 tonnes of newsprint.
Samfi and Paprec plan to develop the site into a platform for the supply of green energy and the production of raw materials from recycling. The future site would consist of a sorting and packaging plant for paper and plastics, an on-site power generation facility using biomass and a production facility for renewable hydrogen.
Samfi and Paprec plan to invest approximately 450 million euros and create 250 direct and 400 indirect positions.
"We are very pleased with the agreement. Samfi and Paprec will develop the site further, leveraging the very good location and infrastructure," said Anu Ahola, Senior Vice President Operations, UPM Communication Papers. "The nature of the project is very much in line with UPM's commitment to help build a future beyond fossils and will bring an innovative and sustainable investment to the region.
"It is also important to underline that UPM will remain committed to the French newsprint market and we will continue close collaboration with our partners and customers here," Ahola added.
Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. To learn more, visit: www.upm.com.
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