Sappi Europe has confirmed it will close Paper Machine 2 at its Kirkniemi Mill in Lohja, Finland, by the end of 2025. The decision follows a consultation process that began in August, aimed at improving the mill’s cost competitiveness and profitability.

The closure will reduce Sappi’s annual coated mechanical paper capacity by around 175,000 tonnes, and result in 93 job losses, some of which will be managed through retirement arrangements. Sappi says it is working closely with local authorities to support affected employees through the transition, including the establishment of an on-site service point, and the provision of individual career transition coaching.

“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,” said Misa Bursac, vice president manufacturing, R&D and technology at Sappi Europe. “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.”

Sappi said production from Paper Machine 2 will be transferred to the mill’s other two paper machines, which will continue to operate. The company added that customer deliveries will not be affected.