UPM Ends Paper Production at Kaukas Mill, Impacting 220 Jobs, Shifting Coated Mechanical Paper Production to Rauma

UPM has permanently ended paper production at its Kaukas mill in Lappeenranta, Finland, effective by the end of 2025, resulting in a reduction of coated mechanical paper capacity by 300,000 tonnes annually. Approximately 220 jobs will be affected as the company concludes employee consultation processes. The decision responds to structural overcapacity and declining demand for graphic papers driven by digitalization and macroeconomic challenges. UPM plans to relocate coated mechanical paper production to its Rauma mill to improve asset utilization, production efficiency, and logistics. While paper production ceases, pulp, sawn timber, biofuels manufacturing, and R&D at Kaukas will continue. This restructuring will incur €78 million in charges but is expected to yield annual fixed cost savings of €32 million. UPM remains focused on long-term competitiveness, sustainability, and supporting employees through the transition.