COPENHAGEN (Reuters) - Finland's UPM said on Tuesday it is planning to permanently close its paper mill in Germany's Ettringen and implement cost-cutting measures that will affect a total of 462 jobs,
Finland's UPM to shut paper mill in Germany, implement other cost-cutting mea...
COPENHAGEN (Reuters) - Finland's UPM said on Tuesday it is planning to permanently close its paper mill in Germany's Ettringen and implement cost-cutting measures that will affect a total of 462 jobs, citing a dynamically changing market and overcapacity.
Forestry companies have been adjusting production and shifting focus to making cardboard, packaging materials, labels and tissue paper in response to shrinking demand for printing and writing paper.
The planned cost cuts are estimated to save 39 million euros ($42.56 million) annually, UPM said in a statement, adding that it was planning to cut costs in Germany, the United States, Finland and Scotland.
"With the planned measures we improve cost efficiency and competitiveness, while ensuring a reliable supply from our production locations in Finland, Germany, the UK and the USA," the company said.
UPM said it will book restructuring charges of 74 million euros in its first-quarter result.
($1 = 0.9163 euros)
(Reporting by Louise Breusch Rasmussen, editing by Essi Lehto and Louise Heavens)
