News - UPM Ettringen Paper Mill

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News - UPM Ettringen Paper Mill

News - UPM Ettringen Paper Mill

Newsgrafik #116587
 27.03.2017

UPM to sell its hydro power facilities in Schongau and Ettringen to erdgas schwaben  (Company news)

UPM has signed an agreement on the sale of its hydro power facilities in Schongau and Ettringen, Germany to erdgas schwaben gmbh, a regional energy company, located in Augsburg.

The sale and purchase agreement is still subject to third party approvals. The parties have agreed not to disclose the purchase price. The transaction does not have an effect on the employees working at UPM Schongau and UPM Ettringen mills.

"erdgas schwaben is a deep-rooted energy company in Bavarian Swabia as well as a pioneer in power generation from renewable energy sources. As an integral part of an energy company the hydro power facilities could be better developed and optimized," says Rainer Häring, Director Energy, Western Europe, UPM Paper ENA.
(UPM Paper ENA)

Newsgrafik #104394
 01.11.2013

UPM unterzeichnet Letter of Intent über den Verkauf der PM4 von UPM Ettringen  (Firmennews)

UPM und das Unternehmen Aviretta haben einen Letter of Intent über den Verkauf der Papiermaschine 4 von UPM Ettringen unterzeichnet.
Die Aviretta GmbH plant, die PM 4 in Ettringen von UPM zu erwerben und umzubauen. Ziel ist, auf dieser Maschine künftig Verpackungspapiere herzustellen. Die geplante Produktionskapazität würde sich auf etwa 210.000 Tonnen Verpackungspapiere pro Jahr belaufen. Die PM 4 würde am Standort Ettringen verbleiben und es ist geplant, dass das UPM Werk Ettringen bestimmte Dienstleistungen für Aviretta erbringen soll. UPM würde an diesem Unternehmen nicht beteiligt sein.
Anfang April 2013 hat UPM die dauerhafte Schließung der Papiermaschine 4 im Werk Ettringen bekannt gegeben. Die anhaltend schwierige europäische Wirtschaftslage hat den Papierverbrauch im Segment der grafischen Papiere signifikant beeinträchtigt.
„Wir sehen den Plänen von Aviretta, die Papiermaschine 4 in eine Verpackungspapiermaschine umzubauen, positiv entgegen. Mit diesem Set-up könnte man Synergien realisieren, die beiden Vertragspartnern zugutekommen würden. Eine sorgfältige Analyse und die weiteren Gespräche der nächsten Wochen werden zeigen, ob sich das Projekt in dieser Form realisieren lässt“, so Winfried Schaur, Werksleiter der UPM Ettringen.
(UPM Ettringen Paper Mill)

 

UPM closes down the paper machine 3 at Rauma mill and the paper machine 4 at Ettringen mill   (Company news)

UPM will permanently close down the paper machine 3 at UPM Rauma mill in Finland and the paper machine 4 at Ettringen mill in Germany by the end of the April 2013. The number of employees is reduced by 87 in UPM Rauma mill and by 150 in UPM Ettringen mill.
The employee negotiations concerning the closing plans were concluded in March. UPM has also concluded the employee negotitations with the employee representatives concerning streamlining the Paper Business Group and global functions in Finland. Employee negotiations in global functions continue in several countries following local schedules and processes. The selling processes of UPM Docelles paper mill and UPM Aigrefeuille further prosessing mill in France continue.
In the Finnish employee negotiations the argumentation of personnel reductions, schedule and change support for the redundants were discussed.
“The employee reductions are inevitable under the circumstances. UPM will support former employees through re-employment and retraining in many ways,“ says Jyrki Ovaska, President of the UPM Paper Business Group.
Employee reductions are a result of UPM’s need to permanently reduce paper capacity in Europe by a further 580,000 tonnes. Current business environment also makes evident the need for streamlining of the Paper Business Group and UPM’s global functions to remain cost competitive in the new business scale. UPM announced its plans on January 17, 2013.
The continuing challenges in European economy have significantly impacted the consumption of paper, exacerbating the effect of structural changes in paper end-uses and resulting in further decline in the demand of graphic papers in Europe. High costs and significant overcapacity continue to challenge the industry operators in Europe.
(UPM)

 

UPM PLANS TO REDUCE 580,000 TONNES OF GRAPHIC PAPER CAPACITY IN EUROPE  (Company news)

The continuing challenges in European economy have significantly impacted the consumption of paper, exacerbating the effect of structural changes in paper end-uses and resulting in further decline in the demand of graphic papers in Europe. High costs and significant overcapacity continue to challenge the industry operators in Europe.

UPM is planning to permanently reduce paper capacity in Europe by a further 580,000 tonnes. The capacity reductions are planned to take place in Finland, Germany and France. The business environment also makes evident the need for streamlining of the Paper Business Group and UPM’s global functions to remain cost competitive in the new business scale.

In early January, UPM finalized the employee consultation process in UPM Stracel, France, implying reduction of 270,000 tonnes of coated magazine paper capacity. With UPM Stracel and today’s plans, UPM would reduce a total of approximately 850,000 tonnes of graphic paper capacity in 2013.

UPM plans:

- a permanent closure of paper machine 3 at UPM Rauma mill in Finland,
- a permanent closure of paper machine 4 at UPM Ettringen in Germany,
- a sale or other exit of UPM Docelles mill in France, and
- subject to further analysis, streamlining in the Paper Business and UPM’s global functions.
If all plans will be implemented, UPM’s personnel would be reduced by approximately 860 persons. The plans would affect several countries.

According to the plan the Rauma and Ettringen machine lines would be permanently closed by the end of first half of 2013. Both machines are producing uncoated magazine paper, in total 420,000 tonnes annually.

The employee information and consultation processes will start in line with the local legislation. In case of Ettringen and Rauma the process will start immediately.

The process for selling the UPM Docelles mill will start immediately. The process will be given maximum six months. Docelles is producing uncoated woodfree papers, 160,000 tonnes annually.

As for Paper Business Group and global functions streamlining, the process will start after further analysis as of the beginning of February 2013.

Including UPM Stracel, the plans are estimated to result in annual fixed cost savings of EUR 90 million, and one-time cash costs of EUR 100 million.

“The target of the planned actions is to ensure the efficient use of UPM’s remaining capacity. The paper machines targeted for closure are either at the end of their technical age, have limited product flexibility or poor profitability. The situation is very regrettable for the personnel, however, in the overcapacity situation, we need to adjust our capacity to the level of profitable customer demand,” says Jyrki Ovaska, President of the UPM Paper Business Group.

“Healthy cash flow is critical for UPM and its employees. Therefore UPM must take action to secure it. Under these circumstances only the most efficient and the most flexible production lines and organizations are competitive,” says Ovaska.

UPM will publish its Financial Statement 2012 on January 31, 2013 with analyst conference call as well as Finnish press conference on the same day.

For further information, please contact:

Jyrki Ovaska , President, Paper Business Group, UPM, (best available from 10:45 until 12:00 EET and from 14:00 until 16:00 EET), Tel. +358 204 150 564
In German: Hartmut Wurster , Executive Vice President, Technology, UPM,
Tel. +49 821 3109 243 (from 13:00 until 16:00 CET)
In French: Jean Marc Louvet, Director, French Projects, UPM, Tel. +33 6 0742 1115, (from 10:30 until 14:00 CET)
(UPM-Kymmene Group)