The forest industry group UPM will close its paper mill in Ettringen, Germany, ending the production of graphic paper at the site. The shutdown will affect 189 employees, the company said in a press release.
The decision marks another reduction in production capacity in Europe’s paper industry, where demand for traditional printing and office paper has been declining for years due to digitalisation and structural changes in media consumption.
Mediation during negotiations
UPM said the change negotiations were conducted through arbitration, with an independent party supporting what the company described as a constructive dialogue between employee representatives and management.
The company stated that it has sought responsible solutions for staff and aims to mitigate the effects of the closure as far as possible.
– UPM states that it has sought responsible solutions for personnel and is trying to ease the impact of the shutdown, according to the company’s press release.
Capacity to decline
With the closure of the Ettringen facility, UPM’s annual production capacity for uncoated printing paper will decrease by 270,000 tonnes. The move is part of the company’s ongoing adjustment to a shrinking market for graphic paper in Europe.
Over the past decade, UPM has steadily reduced its exposure to printing paper and shifted investment toward packaging materials, pulp, energy and biomaterials. At the same time, closures across the sector continue to affect employment in regions where the paper industry has historically been a major employer.
The European paper market is characterised by overcapacity in some segments, pressure on margins and changing consumption patterns. Falling demand for newsprint and office paper has led several manufacturers to shut down or repurpose mills in recent years.
Industry context
The closure reflects broader structural changes across Europe’s forest and paper sector, where companies are consolidating operations and focusing on higher-margin products. Rising energy costs and competition from digital media have accelerated the decline in graphic paper consumption, forcing producers to streamline capacity.
For industrial regions in Germany and neighbouring countries, the shift has raised concerns about long-term employment and regional supply chains linked to paper production. UPM’s decision adds to a series of closures across the continent as the sector continues to adapt to lower demand and tighter profitability.
Source: UPM.
