Finance
Finland's UPM to shut paper mill in Germany, implement other cost-cutting measures
Published by Global Banking & Finance Review®
Posted on March 11, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 11, 2025
1 min readLast updated: January 24, 2026
UPM plans to close its Ettringen paper mill in Germany, impacting 462 jobs, to address market changes and overcapacity, saving 39 million euros annually.
COPENHAGEN (Reuters) - Finland's UPM said on Tuesday it is planning to permanently close its paper mill in Germany's Ettringen and implement cost-cutting measures that will affect a total of 462 jobs, citing a dynamically changing market and overcapacity.
Forestry companies have been adjusting production and shifting focus to making cardboard, packaging materials, labels and tissue paper in response to shrinking demand for printing and writing paper.
The planned cost cuts are estimated to save 39 million euros ($42.56 million) annually, UPM said in a statement, adding that it was planning to cut costs in Germany, the United States, Finland and Scotland.
"With the planned measures we improve cost efficiency and competitiveness, while ensuring a reliable supply from our production locations in Finland, Germany, the UK and the USA," the company said.
UPM said it will book restructuring charges of 74 million euros in its first-quarter result.
($1 = 0.9163 euros)
(Reporting by Louise Breusch Rasmussen, editing by Essi Lehto and Louise Heavens)
UPM is planning to permanently close its paper mill in Ettringen, Germany, as part of its cost-cutting measures.
UPM estimates that the planned cost cuts will save approximately 39 million euros annually.
The cost-cutting measures will affect operations in Germany, the United States, Finland, and several other locations.
UPM plans to book restructuring charges of 74 million euros in its first-quarter results due to these changes.
Forestry companies, including UPM, are shifting focus to cardboard, packaging materials, labels, and tissue paper due to shrinking demand for printing and writing paper.
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