UPMCommunication Papers

UPM permanently closes its Chapelle newsprint mill

Investor news 16.7.2020 11:00 EEST

UPM will permanently cease production at its Chapelle newsprint mill in Grand-Couronne, France today. The consultation process with employee representatives was completed on June 15th, 2020 according to French legislation and approved by French authorities on July 15th, 2020.

The closure impacts 228 people. UPM offers support to employees in order to alleviate the effects caused by staff reductions in relation to the closing of the mill.

With the closure of the mill UPM will reduce a total of  240.000 tonnes of its newsprint paper capacity.

“After UPM announced the intention to sell the Chapelle mill in September we started an active sales process and have been in discussions with interested parties since. However, we have not received binding offers by potential buyers. Consequently, we decided to close the mill, while at the same time working with employee representatives to mitigate the social impact on our employees. We remain committed to selling the mill assets if we receive a suitable offer,” says Anu Ahola, Senior Vice President, News & Retail, UPM Communication Papers.

UPM recognizes restructuring charges in total of EUR 78 million, whereof EUR 61 million as cash costs. EUR 45 million was booked as items affecting comparability in Q1 2020 and EUR 33 million in Q2 2020. The action will result in annual savings of approximately EUR 30 million.

For further information please contact:
Jean Kubiak, General Manager, UPM Chapelle, (through Pyksis: tel. +33 614888577 or +33 663677511)

UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com

About UPM Chapelle
UPM Chapelle manufactures newsprint papers with an annual capacity of 240,000 tonnes. Situated in Grand Couronne, France the mill currently employs 228 people, operating one paper machine.

About UPM Communication Papers
UPM Communication Papers is the world's leading producer of graphic papers, offering an extensive product range for advertising and publishing as well as home and office uses. The high performing papers and service concepts of UPM add value to our customers' businesses, while actively fulfilling demanding environmental and social responsibility criteria. With headquarters in Germany, UPM Communication Papers employs approximately 7,700 people. More about UPM Communication Papers and its products at www.upmpaper.com

Follow UPM Communication Papers on Twitter | LinkedIn

UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 18,700 people worldwide and our annual sales are approximately EUR 10.2 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com

Follow UPM on Twitter | LinkedIn | Facebook | YouTube | Instagram | #UPM #biofore #beyondfossils