Weekly

UPM sells stake in RCP sorting plant near Munich


Frauke Schmidt, 8 July 2024


UPM has signed an agreement on the sale of its 50 per cent stake in the recovered paper (RCP) sorting plant ASD Altpapier Sortierung Dachau in Germany to Rowe.

Rowe, a Veolia subsidiary, already held a 50 per cent stake in ASD, UPM said. The parties have agreed not to disclose the purchase price. The transaction will have no impact on the employees of ASD.

“We are pleased to sell ASD sorting operations to Rowe as they have long-term orientation to recovered paper lifecycle management. Rowe, as part of Veolia, has a high level of expertise in collecting, sorting and handling recovered paper. In the recovered paper supply market, there are still plenty of room for development and optimization, and ASD together with Rowe and Veolia is in a great position to capture this market opportunity,” says Teija Konttori, Director Fibre Sourcing at UPM.

UPM has reacted to the decline in graphic paper demand and closed down, among others, more than 800,000 tpy of newsprint production capacity in Germany and Austria over the last two years (Schongau 165.000 t, Steyrermühl 320,000 t, Hürth 330,000 t). Furthermore UPM closed down the Plattling mill with a capacity of more than 600,000 tpy of SC-A and LWC, which also contained recovered paper.

This clearly decreased the company's recovered paper requirements.

Source: Euwid