UPM sells its Shotton paper mill to Eren Paper Ltd
The transaction will reduce UPM’s annual newsprint capacity by 250,000 tonnes
UPM has signed an agreement to sell its Shotton newsprint mill site in North Wales, United Kingdom and all related assets to Eren Paper Ltd, a subsidiary of Modern Karton Sanayi Ve Ticaret A.Ş., the containerboard and corrugated packaging business of the Turkish industrial conglomerate Eren Holding (“Eren”).
The closing of the transaction is planned for late Q3 2021.
Newsprint production is planned to stop by 30 September 2021 and Eren will take over responsibility for the mill as of 1st October 2021.
“We are very pleased with this agreement. It will provide a long-term future for the employees at our Shotton paper mill and a continued use of the site infrastructure. It will help UPM to further consolidate its newsprint production capacity while leveraging the value of the site and its assets. This sale will also support Eren in expanding its business in the UK market” says Winfried Schaur, Executive Vice President of UPM Communication Papers.
The transaction will reduce UPM’s annual newsprint capacity by 250,000 tonnes and fixed costs by EUR 30 million upon closing of the sale. The fixed costs reduction is in addition to the earlier communicated fixed costs savings impact of EUR 130 million from actions implemented during H2 2020 and 2021.
UPM plans to continue serving UK newsprint customers also after the sale and will continue sourcing RCP in the UK. UPM and Eren have agreed to co-operate closely during the transition period to ensure a smooth transfer of the operations.
For more information, visit www.upm.com