UPM has agreed to sell its Shotton newsprint mill in North Wales to Eren, a subsidiary of Turkish mill group Modern Karton.
It intends to convert the mill to produce cardboard with newsprint production stopping in September this year once the company completes the acquisition in the third quarter of 2021.
The renewable energy generation plant and materials recycling facility will continue to operate during the conversion.
UPM Communications Papers executive vice president Winfried Schaur said: “We are very pleased with this agreement. It will provide a long-term future for the employees at our Shotton paper mill and a continued use of the site infrastructure.
“It will help UPM to further consolidate its newsprint production capacity while leveraging the value of the site and its assets. This sale will also support Eren in expanding its business in the UK market.”
The transaction will reduce UPM’s annual newsprint production by 250,000 tonnes and fixed costs by €30 million upon closing the sale.