UPM-Kymmene said Thursday it will temporarily curtail activity at two of its pulp mills in Finland, prompting a decline in the company's shares on Helsinki trading.
The firm confirmed its Kaukas pulp mill will be taken offline from August 3, 2026, for an estimated period of roughly six weeks. In addition, UPM flagged a potential temporary shutdown at its Pietarsaari mill, which it is considering for October.
By 07:31 GMT on the same trading day, UPM's stock had fallen 2.3% in Helsinki. The company framed the curtailments as a measure to "optimize production levels and wood sourcing and to ensure profitability in the current market and cost environments." Those were the reasons provided by management for the scheduled and potential stoppages.
Company commentary described the actions as temporary adjustments rather than permanent closures. UPM emphasized that the steps are intended to align production with wood supply and to preserve financial performance given present market and cost conditions.
Market participants responded to the operational update with an immediate share-price reaction. The specific timing and duration disclosed for Kaukas - a defined start date and an approximate six-week window - was contrasted with the more contingent status of Pietarsaari, which the company has described as a possible shutdown in October rather than a confirmed stoppage.
The announcement highlights the company's operational flexibility in responding to its stated objective of matching output with available timber and prevailing economic conditions. UPM did not provide further operational detail beyond the start date for Kaukas, the approximate length of that outage, and the conditional plan for Pietarsaari.
Summary
UPM will temporarily halt operations at Kaukas starting August 3, 2026 for about six weeks and may temporarily close Pietarsaari in October. The company said the moves are aimed at optimizing production and wood sourcing and safeguarding profitability amid current market and cost conditions. Shares fell 2.3% by 07:31 GMT.
Key points
- Scheduled temporary shutdown at Kaukas mill begins August 3, 2026, for approximately six weeks.
- Pietarsaari mill faces a potential temporary stoppage in October, noted as not yet final.
- Sectors affected include forest products and timber/wood sourcing, and UPM's shares moved lower on the news.
Risks and uncertainties
- The potential Pietarsaari shutdown remains conditional, creating uncertainty for output planning in the pulp sector.
- Market and cost environments cited by UPM could continue to influence further production adjustments.
- Wood sourcing alignment with production is a central concern and could affect supply chains for forest products.