UPM’s change negotiations concluded at Kaukas mill; lumber production continues

Forestry company UPM has confirmed it will close its Kaukas paper mill in Lappeenranta by the end of this year. The decision, first signaled in July, affects approximately 220 employees. The closure will reduce Finland’s coated magazine paper production capacity by 300,000 tons annually. UPM plans to centralize magazine paper production at its Rauma mill, citing structural overcapacity in the graphic paper market and declining demand due to digitalization. The company also aims to strengthen long-term competitiveness in its paper business. Kari Rikkilä, chief shop steward at Kaukas, described the atmosphere among staff as tense ...