Finnish pulp and paper maker UPM-Kymmene said on Monday the company will close its Madison Paper Industries paper mill in Maine, United States, and sell off its related hydro power assets.
UPM-Kymmene, the world's biggest producer of graphic papers such as newsprint and magazine and office paper, has recently aimed to shift focus to pulp, as the market for print paper has been hit by the growth of digital media.
The mill, that employs more than 200 people, produces approximately 195,000 tons of supercalendered paper, that is used for magazines and catalogues.
UPM-Kymmene said that demand for supercalendered paper declined significantly in 2015, and the decline is expected to continue.
"The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past," Ruud van den Berg, Senior Vice President of UPM Paper for Europe and North-America, said in a statement.
The mill, a partnership with Northern SC Paper Corporation, a subsidiary of the New York Times Company, is expected to close at the latest by the end of May.
Source : reuters.com