Sappi Europe to close paper machine at Finnish mill

Sappi Europe has completed a consultation process that will result in the closure of Paper Machine 2 at its Kirkniemi Mill in Lohja, Finland, by the end of 2025. This will reduce the company's annual coated mechanical paper production capacity by 175,000 tons and affect 93 positions.

The consultation process, which began in August, aimed to improve the mill's profitability and cost competitiveness. Some redundancies will be managed through retirement arrangements, while Sappi has established a dedicated service point at the mill in cooperation with the local employment office and will offer individual career transition coaching to all impacted employees.

'While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements,' stated Misa Bursac, VP manufacturing, R&D and technology. 'This step is part of our broader commitment to optimizing our operations, enhancing sustainability and ensuring the long-term competitiveness of Sappi Europe.'

The shutdown forms part of Sappi's strategic plan to align production capacity with market demand and optimize utilization of the mill's remaining paper machines. Production of Paper Machine 2 grades will be transferred to Kirkniemi's Paper Machines 1 and 3, which will continue operating, with deliveries to customers continuing without disruption.