Georgia-Pacific to close mill in Augusta

The net investment amount for the conversion project at Norske Skog Golbey will increase from EUR 265 to 300 million. As of the 3rd quarter of 2023, a net EUR 200 million has been invested in the project. The increase is generally due to increased purchase prices for goods and services throughout the project period as well as somewhat delayed deliveries of equipment. The start-up of production of packaging in Golbey is postponed to the second half of 2024 due to delivery delays. Considerable effort will be devoted going forward to ensure that the conversion project is completed within the new framework. The Golbey project will convert a paper machine (PM1) from producing newsprint to producing recycled containerboard. The machine will have a capacity of 550,000 tonnes and is expected to reach 95% utilisation within 2-3 years after startup. Together with the already converted paper machine (PM3) in Bruck, this project will provide Norske Skog with a total capacity of 760,000 tons of containerboard.

The Transport Workers’ Union AKT has today announced a blockade against UPM in Finland to support the strikes of the Paperworkers’ Union and the Finnish Electrical Workers´ Union. AKT’s support measures will be carried out as a blockade in Finnish ports. During the blockade, the stevedores will not handle UPM’s paper and pulp. The blockade will begin on 24 January at 06:00. “AKT’s actions do not advance functioning labour markets. AKT is not even a party in the negotiations, which we aim to start with the Paperworkers’ Union,” says Jyrki Hollmén, Vice President, Labour Markets, UPM. "We hope to get into negotiations with the Paperworkers’ Union soon, so that both parties can present their goals and seek solutions acceptable to all. Members of the Paperworkers’ Union certainly have the right to strike but now it only postpones the start of negotiations. The AKT blockade doesn’t make the situation any better," Hollmén continues.

The decrease in consumption caused by the Covid-19 pandemic has triggered strong pressure on prices. In combination with cost increases in paper production and transport this has led to unsustainable profitability levels, especially felt in our overseas markets. Sappi has therefore been forced to review its pricing per market and product segment, adjusting them accordingly. The increases will be applied as of shipments from January 2021 at the latest and will vary between 5 and 8%.