November 13, 2014
As part of the new profit improvement target with an annualised impact of EUR 150 million by the end of 2015, UPM intends to save various variable and fixed costs spread over all its businesses. The target will also include capacity closures in the European paper business, which continues to suffer from overcapacity.
As part of the programme UPM will start a review of the production, maintenance and other site operating practices across all of UPM businesses and operating countries. The total annualised cost reduction impact of EUR 150 million is expected by the end of 2015, compared with the Q3 2014. The fixed cost reduction of the planned capacity closures is expected to be EUR 55 million. UPM will book write-offs of approximately EUR 100 million and restructuring charges of approximately EUR 80 million in Q4/2014.
Permanent closures in UPM Paper ENA
UPM will reduce its publication paper capacity in Europe by further 800,000 tonnes approximately by effecting permanent closures of facilities in UPM Paper ENA. UPM plans a permanent closure of:
- Newsprint machine 3 at UPM Chapelle in France
- Newsprint machine 1 at UPM Shotton in the UK
- SC paper machine Jämsänkoski 5 at UPM Jämsä River Mills in Finland
- Coated mechanical paper machine 2 at UPM Kaukas in Finland