UPM has announced a temporary shutdown of its Kaukas pulp mill in Finland beginning August 3, while also evaluating a potential production stoppage at its Pietarsaari pulp mill later this year.

The company said the measures are intended to optimize production levels, improve wood sourcing efficiency, and maintain profitability amid current market and cost conditions.

Kaukas Mill to Halt Production for Six Weeks

The Kaukas Pulp Mill in Lappeenranta, southeastern Finland, will be temporarily shut down for approximately six weeks.

The facility has an annual production capacity of 700,000 tonnes of softwood pulp across two production lines.

The broader Kaukas industrial site also includes:

• A sawmill
• A renewable diesel biorefinery
• UPM’s research centre
• A paper mill that ceased operations in late 2025

Pietarsaari Shutdown Under Evaluation

UPM is also planning a possible temporary shutdown of the Pietarsaari Pulp Mill in October.

The mill has an annual production capacity of 800,000 tonnes of softwood and birch pulp and is one of UPM’s key pulp production facilities.

The Pietarsaari site additionally hosts:

• UPM’s Alholma sawmill
• The Alholmens Kraft power plant
• Regional wood procurement operations

Market Conditions Drive Production Adjustments

The announcement comes as pulp producers continue to navigate volatile global market conditions, fluctuating fiber costs, and changing demand patterns.

Temporary production curtailments have become increasingly common across the global pulp industry as manufacturers seek to balance supply with market demand while protecting profitability.

UPM’s pulp business operates three pulp mills in Finland and two additional mills in Uruguay, supported by extensive forestry and wood sourcing operations.

Industry Outlook

The planned shutdowns highlight the ongoing challenges facing pulp producers in Europe, where high operating costs, wood availability, and market uncertainty continue influencing production strategies.

Industry participants will be watching closely to see whether additional pulp producers implement similar measures as companies adjust output to align with market conditions during the second half of 2026.

Source: UPM

Last Updated on 22/06/2026 by Jota Machinery