UPM has completed employee consultations and confirmed it will permanently cease paper production at its Kaukas mill during Q4 2025, reducing coated mechanical paper capacity by 300,000 tonnes annually and affecting 220 positions. The company will continue operations in pulp, sawn timber, biofuels, and R&D at the Kaukas site, while shifting coated mechanical paper production to its Rauma mill.

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UPM has finalized its employee consultation process and confirmed plans to permanently end paper production at its Kaukas mill in Finland, marking a significant step in the company’s restructuring of its paper operations. Paper Machine 1 at Kaukas will cease operations in the fourth quarter of 2025, resulting in a reduction of 220 positions. The closure will cut UPM’s coated mechanical paper capacity by 300,000 tonnes per year, with remaining production consolidated at the company’s Rauma mill.

Despite the closure, UPM’s other operations at the Kaukas industrial site, including pulp, sawn timber, biofuels production, and R&D activities, will continue unaffected. Matti J. Laaksonen, General Manager of Finnish Paper Mills, said the consultations were carried out “in a constructive spirit, focusing on the rationale behind the planned changes, their potential impact, and the comprehensive support available to affected employees.” He added that UPM’s long-standing “from-job-to-job” program, in place since 2006, will be implemented to assist employees in transitioning to new roles within or outside the company.

“The last few weeks have not been easy for any of us,” Laaksonen acknowledged. “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.” To ensure safety and compliance at the site after production ends, UPM will establish an after-care team at the Kaukas mill. The company emphasized that the closure aligns with its broader strategy to optimize production efficiency and strengthen competitiveness within its global paper business.