Paper maker UPM is to shut 485,000 tonnes of its European capacity following consultations in Germany and Austria.

Affected are paper machine 6 at Schongau (Germany) and paper machine 4 at Steyrermühl (Austria).

Employee consultations have been finalised in Schongau, where 136 people are affected, and the uncoated publication paper machine will be permanently closed today. Other “cost-competitive” machines will continue to produce graphic paper.

General manager Wolfgang Ohnesorg says discussions focussed on countering the circumstances – primarily through partial retirement – and preparing the site for future challenges.

Newspaper production at Steyrermühl (pictured) has ended – accelerating the plans to ensure competitive production at other UPM newsprint paper machines – and the company says the decision “will have no impact” on the plans for the Steyrermühl site, where Heinzel Group will take over the site and its staff next year, moving to kraft production.