UPM has announced plans to sell its Shotton site as part of its 'restructuring' plans to save money.

The planned action would save the Finnish firm an annual cost savings of EUR 75 million.

In a statement issued today, the firm said there had been a 'continued long-term decline' in graphic paper demand combined with a 'weakened economic outlook'.

In 2020, the Covid-19 pandemic caused a 'demand disruption' and despite early signs of normalisation, the ;ensuing economic outlook has deteriorated globally'.

The announcement to sell comes as part of its conversion purposes.

Current production capacity of the mill is 250 000 tonnes of newsprint in Deeside, Wales. The mill assets include the materials recollection and recycling facility, deinking plant, paper machine line and energy infrastructure as well as established access to the UK recycled paper market.

Winfried Schaur, Executive Vice President of UPM Communication Paper, said: "UPM Shotton is well positioned to serve the UK market. However, we look for outside opportunities for alternative long-term use of the mill as the newsprint consumption continues to decline.

"The paper machine is technically flexible to support conversion especially into containerboard production."