UPM Finland to close paper production in Kaukas and relocate operations to Rauma

UPM, a leading company in the paper and forest products industry, has completed employee consultation processes following its late July announcement to permanently end paper production at its Kaukas mill in Lappeenranta, Finland. Coated mechanical paper production will be relocated to the Rauma mill, Finland.

Paper machine 1 in Kaukas will be permanently closed during Q4 2025, resulting in a reduction of 220 positions. Following the closure, coated mechanical paper production capacity in Finland will decrease by 300,000 tonnes annually.

UPM’s pulp, sawn timber, biofuels production, and R&D activities at Kaukas will continue unchanged.

Matti J. Laaksonen, General Manager of Kaukas and Kymi mills, stated that the consultations were conducted in a constructive spirit, focusing on the rationale behind the planned changes, potential impacts, and support available to affected employees. As part of the process, a “from-job-to-job” program will be implemented, UPM’s established model for change support since 2006.

“The past few weeks have not been easy for any of us. Even in these difficult times, our skilled team at Kaukas has ensured stable operations, which we greatly respect. We have focused on finding solutions for affected employees, aiming to mitigate the impact of the closure,” Laaksonen concluded.

An after-care team will be established to ensure safe conditions at the mill following the closure.