The company said its decision was based on plans it announced in June 2022 and March 2023, respectively.

The employee consultation process in Schongau was conducted in line with local legislations and has now been finalised, with 136 jobs affected at the site.

The uncoated publication paper machine 6 will be permanently closed today (29 June) but UPM said Schongau will continue graphic paper production “on the remaining cost-competitive machines”.

UPM Schongau general manager Wolfgang Ohnesorg said: “We held constructive and fair employee discussions to reduce the impact of the paper machine closure on our personnel.

“Together with the employee representatives, we focused on countering the circumstances, primarily through partial retirement measures.

“Additionally, we took the opportunity to implement structural changes to make our site fit for future challenges. I would like to express my sincere thanks to our entire workforce, which has managed to transfer all paper grades previously produced on PM 6 to PM 9 in such a short time frame.”

UPM Communication Papers also ended newspaper production at its Steyrermühl mill today but, as the company stated a year ago when the site was sold to pulp, packaging, and paper producer and trader the Heinzel Group, this will have no impact on the plans for Steyrermühl and its employees.

UPM is now accelerating its plans “to ensure competitive production at our remaining newsprint paper machines in Europe”.

UPM Steyrermühl general manager Ernst Spitzbart said: “I admire the professionalism and flexibility of our employees, who are already working conscientiously to integrate UPM Steyrermühl into the Heinzel Group.

“The new owner will take over the responsibility for the site and thus also for the employees after the closing of the transaction is completed at the beginning of 2024.”

Earlier this month, the European Commission decided to close its antitrust investigation into potential anticompetitive practices in the wood pulp sector, which included unannounced inspections at firms including UPM, after it found there was insufficient ground to further pursue the investigation.

Separately, UPM has recently teamed up with students from Central St Martins University of the Arts London on a major project looking at how industries can shift to renewable, circular economy materials – “prototyping a world beyond fossils”.