In August, the company announced it had begun discussions regarding the potential closure of Paper Machine 2 to improve the site’s profitability and overall cost competitiveness.
That consultation has now concluded, with Sappi confirming that Paper Machine 2 will cease operations by the end of 2025.
The closure will result in a reduction of around 175,000 tonnes in Sappi’s annual coated mechanical paper capacity.
The Kirkniemi mill currently produces approximately 750,000 tonnes of high-quality magazine paper each year.
Impact on paper mill operations
Sappi confirmed that the production of grades currently made on Paper Machine 2 will be transferred to the mill’s remaining Paper Machines 1 and 3, which will continue to operate.
The company added that customer deliveries will continue without disruption.
Misa Bursac, Vice President Manufacturing, R&D and Technology at Sappi Europe, said: “While the decision to close Paper Machine 2 was not taken lightly, it reflects the wider structural changes in the paper market and the need for ongoing efficiency improvements.
“This step is part of our broader commitment to optimising our operations, enhancing sustainability, and ensuring the long-term competitiveness of Sappi Europe.
“By consolidating production on Kirkniemi’s remaining machines, we will strengthen our ability to serve customers reliably while continuing to invest in the future of our European operations and ultimately our industry.”
Employment losses
The planned closure will lead to the loss of 93 positions at the Kirkniemi site. Sappi said some of these redundancies will be managed through retirement arrangements.
To support affected staff, the company has established a service point at the mill in cooperation with the local employment office.
All impacted employees will also be offered individual career transition coaching to assist in finding new opportunities.
Paper market in September
September 2025 saw relatively stable prices for the paper market, after prices softened in August.
Ongoing factors include the US tariffs which are affecting the Indian market and are also encouraging the introduction of cheap reels from export markets such as Canada and the Nordic countries. The categories affected are predominantly OCC and newsprint.
The exception to the month of stable prices is in Sorted Office Waste (SOW) and multigrade which both saw substantial decreases.
This can be attributed to very low European demand, which is unlikely to recover in the short term.
Find out more about paper prices in our market report for September 2025.
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