UPM reducing the annual production capacity of coated mechanical paper by 300,000 tonnes.
Oct 3, 2025 - UPM today said that employee consultation processes have now been completed at the company's Kaukas paper mill in Lappeenranta, South East Finland, and UPM will permanently end paper production at the mill during Q4 2025.
The production of pulp, sawn timber and biofuels, along with R&D activities at the integrated Kaukas site will continue as before.
The reduction of personnel is 220.
In July, UPM first announced the plans to cease paper production at Kaukas Mill. The mill operates one paper machine, PM1, which has the capacity to produce 300,000 tonnes per year of coated mechanical paper.
UPM plans to shift its coated mechanical paper production in Finland to UPM Rauma mill.
"The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees," said Matti J. Laaksonen, General Manager, Kaukas and Kymi mills. "As part of the process, we agreed to implement a from-job-to-job program, which has been UPM's established model for change support since 2006.
"The last few weeks have not been easy for any of us. Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure," Laaksonen concluded.
To ensure safe conditions at the mill following the closure, an after-care team will be in place, UPM noted.
UPM Communication Papers offers a wide portfolio for newspaper, magazine, marketing and book printing as well as for home and office applications. The division employs around 5,000 people and operate 10 modern paper mills globally with an annual production capacity of 4.3 million tonnes of graphical paper,
SOURCE: UPM