UPM-Kymmene is extending a shutdown at one Finnish pulp mill and temporarily closing another, citing challenging market conditions and high raw material costs.
The Finnish forestry company said on Wednesday it will extend an ongoing maintenance shutdown at its Kaukas pulp mill by two weeks until Oct. 11.
Additionally, its Pietarsaari pulp mill will be temporarily shut down for approximately two weeks in November.
“We are focused on ensuring the profitability of our business,” said Petri Hakanen, Senior Vice President for UPM Fibres Finland Operations.
“By curtailing our production, we adapt to the pulp market situation and high wood cost level,” he added.
The production cuts are the latest in a series of measures by the company to address market weakness.
In July, UPM announced plans to permanently close its paper mill at the Kaukas site, citing structural overcapacity in the graphic paper market.
The company’s chief executive noted in UPM's half-year report that “unsustainably high wood prices” necessitated the extended shutdown at the Kaukas pulp mill.
Earlier in September, UPM also said it planned to discontinue label materials production at a factory in France.
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