Sappi Europe has confirmed that it will permanently close Paper Machine 2 at its Kirkniemi Mill in Lohja, Finland, by the end of 2025 following the completion of an employee consultation process. The decision is part of the company’s broader strategy to improve the mill’s profitability, optimise capacity, and ensure sustainable competitiveness within a changing paper market. Once the closure takes effect, Sappi’s total annual coated mechanical paper production capacity will decrease by 175,000 tonnes.

The decision will result in a reduction of 93 positions at the site. Some redundancies will be managed through retirement arrangements, while all affected employees will receive career transition assistance. Sappi has established a dedicated service point at the mill in cooperation with the local employment office, offering individual coaching and employment guidance to help staff through the transition period.

“While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements,” said Misa Bursac, Vice President of Manufacturing, R&D, and Technology at Sappi Europe. “By consolidating production on Kirkniemi’s remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations and our industry.”

The closure forms part of Sappi’s ongoing plan to balance production with current market demand while maintaining operational efficiency at Kirkniemi’s Paper Machines 1 and 3. Production of grades previously manufactured on Paper Machine 2 will be transferred to the other machines, ensuring that deliveries to customers continue without disruption. Sappi reaffirmed its commitment to operational excellence and sustainability as it adapts its European paper operations for long-term resilience.