Finnish paper and pulp giant UPM-Kymmene has cut 450,000 tonnes of magazine paper capacity at its Miramichi mill in Canada, which had been on temporary shutdown since August, with the site's 580 employees to go.

Magazine papers president Jyrki Ovaska said the firm had looked at ways to make the mill viable throughout the closure, but that "the current business environment leaves us no options".

UPM has also announced a string of temporary closures, including one paper machine at its Kajaani mill in Finland and another at Steyrermühl, Austria with a reduction of 250,000 tonnes of newsprint capacity, as well as machines at two label paper plants in Finland and a coating line in Melbourne, Australia.

A total of 680 UPM employees will to lose their jobs.

Meanwhile, Swedish paper maker SCA has announced it will restructure to cut up to 300,000 tonnes of paper capacity in its European packaging operations as it shifts focus to its tissue offerings.

The move, which will not affect its publications paper division, leaves as many as 1,700 jobs hanging in the balance as it seeks a £106m (SEK1.4bn) profit boost over three years.

SCA has three magazine papers and newsprint mills, including partly owned Aylesford Newsprint in the UK, as well as plants in Ortviken, Sweden and Laakirchen, Austria, which have a total capacity of 1.8m tonnes of publication papers.