UPM to permanently end paper production at Kaukas mill
Focus shifts to pulp, timber, and biofuels operations.
UPM has confirmed the permanent closure of paper production at its Kaukas mill in Lappeenranta, Finland, following the completion of employee consultation processes. The decision, first announced at the end of July, involves shifting coated mechanical paper production to the UPM Rauma mill.
The Paper Machine 1 at Kaukas will be permanently shut down during the fourth quarter of 2025, resulting in the reduction of 220 jobs. After the closure, UPM’s coated mechanical paper production capacity will decrease by approximately 300,000 tonnes per year.
Despite the shutdown, UPM confirmed that pulp, sawn timber, biofuels production, and R&D operations at the UPM Kaukas integrated site will continue without changes.
“The consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees. As part of the process, we agreed to implement a from-job-to-job program, which has been UPM’s established model for change support since 2006,” stated Matti J. Laaksonen, General Manager of UPM Kaukas and Kymi mills.
“The last few weeks have not been easy for any of us. Even in these difficult times, our skilled team at the Kaukas paper mill has ensured stable operations. We greatly respect that. We have focused on finding solutions for the employees affected, with the clear intention of mitigating the impact of this closure,” Laaksonen added.
UPM announced that an after-care team will remain in place at the Kaukas site to ensure safe conditions and controlled operations following the shutdown.
