6 Oct. 2025: UPM's Kaukas pulp and paper mill UPM's Kaukas mill will no longer produce LWC paper. After announcing such plans in July this year, UPM has now taken the final decision to idle paper production at its Kaukas pulp and paper mill in Finland. The company reported that employee consultation processes had now been completed and that the site's PM 1 would be permanently closed during the fourth quarter. 

According to UPM, this will take 300,000 tpy of LWC paper capacity from the market and reduce the number of employees in Kaukas by 220. The company's pulp, sawn timber and biofuels production and R&D activities at the site are unaffected by the move and will continue as before. However, UPM is currently taking a longer-than-expected maintenance downtime at the Kaukas pulp facility until 11 October in order to adjust pulp production to current demand,

UPM had announced its intention to close LWC paper production at Kaukas at the end of July. The company also said it would shift its LWC paper production in Finland to the Rauma mill for better cost efficiency. As reasons for these moves, UPM cited declining global demand for graphic paper due to digitalisation, macroeconomic challenges and changing consumer habits. Capacity utilisation is expected to improve thanks to the closure.

Players in the publication paper market repeatedly call for capacity reduction measures in order to reduce overcapacity. UPM has taken steps this year not only in Finland but also in Germany. The company plans to shut down its Ettringen mill, with implementation of the move still pending. The Ettringen mill can produce up to 270,000 tpy of paper. It specialises on SC paper production but can also make newsprint.

Sappi is also considering to shut down one machine at its Kirkniemi mill in Finland. The affected PM 2 produces LWC and MWC with a capacity of 175,000 tpy.