UPM, the Finland-based parent company of labelstock manufacturer UPM Raflatac, permanently closed paper machine No.3 at UPM Chapelle Darblay in France as June 22. The consultations regarding its closure were finalized at the end of April and approved by the Labor administration in the beginning of June. The plan to close the machine was announced in November 2014. The closure has an impact on 187 positions at the mill.

UPM Chapelle Darblay will continue paper production on the remaining paper machine No.6 producing standard newsprint and improved grades (MFS) with an annual capacity of 250,000 tons.

“This year the European newsprint market has faced even stronger headwind than expected. However, our collective actions will ensure the efficient use of our remaining capacity and secure reliable deliveries to our customers,” says Bernd Eikens, executive vice president, UPM Paper ENA.

The announced decision is part of UPM’s EUR 150 million profit improvement target introduced in November 2014.The full profit improvement program includes variable and fixed cost savings in all UPM businesses and functions.