After announcing plans last November, UPM-Kymmene has shut down its No 3 newsprint machine in Chapelle Darblay, France.

The permanent closure takes out 130,000 tonnes of newsprint capacity and follows consultations finalised late April and approved by the labour administration earlier this month. Some 187 positions at the mill are affected.

UPM Chapelle Darblay will continue to make standard newsprint and improved grades on the remaining paper machine (No.6) which has capacity of 250,000 tonnes a year.

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

The decision was part of a targetted 150 million Euros profit improvement announced last November. The full programme includes variable and fixed cost savings in all UPM businesses and functions.