The decision has been taken as part of the Finnish paper producer's measures to improve its magazine paper division's profitability.

Magazine paper division president Jyrki Ovaska said the decision had been taken in line with how it sees the future for matt-finished coat-ed (MFC) magazine papers.

"There is still some overcapacity in the market and this is a production line that is over 30 years old and would require heavy investment," he said.

Jmsnkoski's paper machine four produces 120,000 tonnes per year of MFC grade paper, including UPM satin.

The firm will consider alternative lines of production for the machine, such as label papers, or whether to close the machine permanently, which could lead to job losses.

Ovaska said the final decision on its future would be taken in Q1 2006.

He said the programme to improve profitability would continue throughout 2006, and this would include machine closures and/or conversions to producing other grades.

The Jmsnkoski mill produces magazine printing papers and speciality papers for self-adhesives.

It has an annual production capacity of 450,000 tonnes.