Sappi Europe announced in August the commencement of a consultation process for the potential closure of Paper Machine 2 at its Kirkniemi Mill in Lohja, Finland. The consultation process, aimed at improving the mill's profitability and cost competitiveness, has been completed resulting in the planned closure of Paper Machine 2 by the end of the calendar year 2025. As a result, Sappi's annual production capacity of coated mechanical paper will be reduced by 175,000 tonnes.

The closure will lead to a reduction of 93 positions. Some of the redundancies will be managed through retirement arrangements. Sappi is committed to supporting all affected employees through the transition. A dedicated service point has been established at the mill in cooperation with the local employment office, and all impacted employees will be offered individual career transition coaching.

Kirkniemi aerial pictures shared by the mill from 2023

"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. This step is part of our broader commitment to optimising our operations, enhancing sustainability, and ensuring the long-term competitiveness of Sappi Europe. By consolidating production on Kirkniemi's remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations and ultimately our industry" says Misa Bursac, VP Manufacturing, R&D and Technology.

The shutdown of Paper Machine 2 is part of Sappi's strategic plan to align production capacity with market demand and to optimise the utilisation 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. Deliveries to customers will continue without disruption.