UPM has announced temporary production curtailments at selected pulp manufacturing facilities in Finland as part of its strategy to align output levels with current market conditions and operational requirements.
The company confirmed that its Kaukas pulp mill will undergo a temporary shutdown beginning on 3 August 2026. The production stoppage is expected to last for approximately six weeks. In addition, preparations are being made for a possible temporary shutdown at the Pietarsaari pulp mill during October.
The planned measures are intended to optimise production volumes, strengthen wood sourcing efficiency and support profitability amid prevailing market and cost pressures. Industry analysts note that production adjustments have become an increasingly important tool for manufacturers navigating fluctuating demand and evolving raw material costs.
The temporary closures form part of broader operational management within UPM Fibres, the business division responsible for the company’s pulp, timber, forestry and wood procurement activities.
According to the company, the decision has been driven by the need to maintain efficient production levels while ensuring that fibre resources are utilised effectively. Market conditions continue to influence operating strategies across the global pulp sector.
The Kaukas facility plays a significant role within UPM’s manufacturing network. Its temporary closure is expected to contribute to balancing production capacity with current business requirements.
The potential shutdown at Pietarsaari remains under evaluation. Planning activities are already underway. Final decisions will depend on operational and market considerations closer to the proposed timeframe.
Across the global pulp industry, manufacturers are facing a combination of economic and supply chain challenges. Cost management has become a priority. Raw material availability remains an important factor in production planning.
Industry participants continue to monitor market demand patterns closely. Production flexibility is increasingly being viewed as essential for maintaining competitiveness.
UPM Fibres operates an extensive network of industrial assets. The division encompasses pulp production, timber processing, forestry management and wood procurement activities. These interconnected operations support the company’s broader material solutions portfolio.
Within Finland, UPM Pulp operates three pulp mills. The company also maintains two pulp mills in Uruguay alongside plantation operations that contribute to fibre supply for international markets.
The organisation’s timber business is another important component of its operations. UPM Timber manages three sawmills located in Finland. These facilities process timber products for a variety of industrial and construction applications.
Wood sourcing remains a central element of the company’s business model. Raw material security must be maintained. Efficient procurement strategies are considered essential for long-term operational stability.
UPM Forest is responsible for securing wood and biomass resources required across the company’s businesses. Forestry operations are managed throughout Northern Europe. Services are also provided to private forest owners and institutional forest investors.
Forest management activities support both commercial objectives and sustainable resource stewardship. Long-term planning is required. Wood supply chains must remain resilient and reliable.
The company continues to position itself as a provider of material solutions based on renewable resources. Its product portfolio includes renewable fibres, advanced materials, decarbonisation technologies and communication papers.
Renewable raw materials are increasingly important within industrial value chains. Manufacturers are seeking alternatives that support sustainability objectives while maintaining performance and efficiency standards.
UPM has focused on developing products designed to support the transition towards lower-carbon industries. Innovation remains a key component of its long-term strategy.
Sustainability performance has also received recognition from independent organisations. Assessments have been conducted by several international benchmarking bodies. Recognition has been awarded through sustainability evaluation programmes, including EcoVadis and the Dow Jones Sustainability Indices.
Environmental performance is becoming increasingly influential in investment decisions and supply chain partnerships. Companies across the forest products sector are placing greater emphasis on measurable sustainability outcomes.
UPM operates on a global scale. Approximately 15,100 people are employed across its international operations. The company maintains a presence in multiple markets and serves customers across diverse industrial sectors.
Annual sales are reported at approximately €9.7 billion, reflecting the scale of its activities across renewable materials, fibre-based products and industrial solutions.
Its shares are listed on the Nasdaq Helsinki exchange. The company remains one of the most significant participants in the Nordic forest industry.
The planned production adjustments at Kaukas and the potential curtailment at Pietarsaari highlight the operational flexibility increasingly required within the pulp manufacturing sector. Market conditions continue to evolve. Cost structures remain under pressure.
By temporarily reducing output at selected facilities, UPM aims to improve production efficiency, optimise fibre resource allocation and maintain profitability across its operations. The measures also reflect the importance of strategic wood sourcing and resource management within today’s competitive global pulp market.
As the industry continues to adapt to changing economic conditions, operational decisions such as these are expected to remain a key part of long-term business planning for major pulp and forestry companies.
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