UPM closes Madison Paper Industries and plans to sell related hydro power assets in the U.S.
UPM-Kymmene Inc. and Northern SC Paper Corp., a subsidiary of the New York Times Company, announced today the dissolution of their partnership, Madison Paper Industries, in the USA. The partnership’s paper business will end and paper production is expected to conclude by the end of May at the latest. Hydro power assets located at the mill site will be sold. With the closure of the mill, UPM will reduce production of a total of 195,000 tons of its supercalendered paper capacity.
The closure will impact approximately 214 employees located at the mill site. Some employees will remain beyond May to maintain buildings, operate the hydro generating facilities and support activities related to the closing. All employment related actions will be handled in accordance with federal and state statutory requirements. “Despite everyone’s best efforts, the difficult decision has been made to cease paper production at Madison. Demand for SC papers declined significantly in 2015 and the decline is expected to continue. The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past,” says Ruud van den Berg, Senior Vice President of UPM Paper ENA.