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Metsä Group Initiating Statutory Negotiations to Improve Profitability; 800 Jobs in Jeopardy
Oct. 2, 2025 - On 31 July 2025, Metsä Group announced it would launch the planning of a EUR 300 million cost savings and profit improvement program. Planning is now complete, and Metsä Group will initiate statutory negotiations concerning its personnel as part of it.
"Our profitability has been undermined by three factors. First, increased uncertainties in global trade have reduced demand for our products. Second, changes in exchange rates have weakened our result and will continue to do so. Third, the increase in raw material costs and the general cost level has eroded our profitability," said Jussi Vanhanen, President and CEO of Metsä Group.
"We operate in a capital-intensive business in which lower utilization rates due to weak demand combined with clearly higher costs create an unsustainable equation that must be addressed," Vanhanen added.
When planning the cost savings program, attention was paid to procurement and logistics costs, and the wood supply chain's efficiency. These account for a considerable share of the planned savings. In addition, the need to restructure and streamline operations to reduce fixed costs was recognized. Significant efficiency enhancement measures were also identified in variable costs.
"Our employees have done good work within our current operating model. Unfortunately, it isn't enough in this situation. We must tackle the things that are in our own hands and shape our operations to ensure long-term competitiveness," Vanhanen said.
According to preliminary assessments, the planned measures may lead to a permanent reduction of 800 permanent jobs. A significant share — 540 jobs — are expected to be in Finland. In addition to redundancies, the planned changes may lead to changes in duties.
Statutory negotiations with personnel representatives will be initiated in accordance with each country's legislation. Metsä Group employs approximately 9,600 people globally, of whom 5,600 are in Finland. The planned reductions at Metsä Board, a listed company part of Metsä Group, are included in these figures.
The negotiations will not include permanent closures of production units. The development of Metsä Group's new business projects (Muoto, Kuura, lignin and bio-based CO2 capture) will continue according to each project's individual plan and schedule.
Cost provisions related to the cost savings and profit improvement program will be recorded in the result for the last quarter of the year.
Metsä Group has its roots in the Finnish forests: our parent company Metsäliitto Cooperative is owned by over 90,000 forest owners. The Group focuses on wood supply and forest services, wood products, pulp, paperboards, and tissue and greaseproof papers.
SOURCE: Metsä Group |
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UPM Initiates Strategic Review of UPM Plywood Business Area
Sept. 23, 2025 - UPM-Kymmene Corporation's Board of Directors has decided to initiate a strategic review of UPM Plywood business area to assess options for maximizing the long-term potential of the business in an evolving market environment.
According to UPM, the strategic review includes a range of possibilities, including a potential separation from UPM through, for example, a divestment, partial demerger or initial public offering. The aim is to determine the best path forward for the Plywood business.
"UPM has transformed into a material solutions company with a broad portfolio of attractive businesses," said Massimo Reynaudo, President and CEO of UPM. "We continuously evaluate opportunities across the portfolio to ensure full value creation potential. The decision to initiate a strategic review of UPM Plywood reflects our commitment to position each UPM business for long-term success."
Tuija Suur-Hamari, Executive Vice President, UPM Plywood, noted, "UPM Plywood is a strong, customer-focused business with a clear strategy and a proven ability to perform under varying market conditions. With the efficient production, robust in-house capabilities, and a well-established commercial model, we focus on delivering value to our stakeholders through the trusted WISA® brand and our long-standing customer relationships."
During the strategic review process, UPM remains fully committed to the Plywood business and its customers.
The review is expected to be concluded by the end of 2026.
About UPM Plywood
UPM Plywood offers high-quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. In 2024, UPM Plywood sales were EUR 430 million and it has around 1,600 employees.
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers.
SOURCE: UPM |
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Wood Pulp Imported to U.S. Added to Duty-Free List Under New Executive Order
Sept. 12, 2025 - The American Forest and Paper Association (AF&PA) announced that on September 5, President Trump signed an Executive Order (EO) making changes to EO 14257 from April. The new EO outlines what products and materials can enter the U.S. duty-free (zero percent tariffs). Three wood pulp tariff codes were added to the list.
Pursuant to this new EO, imported wood pulp will come into the U.S. duty-free — an important development in the long-term trade and tariff policy discussion.
This new list is meant to capture products and materials that are not produced in the U.S. — or not produced at scale. AF&PA has continuously made this argument for specific kinds of wood pulp, such as bleached eucalyptus kraft or BEK.
What's Next?
The EO also added a variety of items to Annex III, which will act as a 'potential' list of items that could be added to the duty-free list in the future, depending on trade talks. Importantly, this new EO also delegates authority to add items to the duty-free list to USTR and Commerce.
About AF&PA
The American Forest & Paper Association (AF&PA) serves to advance public policies that foster economic growth, job creation and global competitiveness for a vital sector that makes the essential paper and packaging products Americans use every day.
The U.S. forest products industry employs more than 925,000 people, largely in rural America, and is among the top 10 manufacturing sector employers in 44 states. Our industry accounts for approximately 4.7% of the total U.S. manufacturing GDP, manufacturing more than $435 billion in products annually. AF&PA member companies are significant producers and users of renewable biomass energy and are committed to making sustainable products for a sustainable future through the industry's decades-long initiative — Better Practices, Better Planet 2030.
SOURCE: AF&PA |
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Georgia-Pacific Announces $800 Million Capital Investment in Alabama River Cellulose Mill
Sept. 10, 2025 - Georgia-Pacific today announced a new capital project for the company's Alabama River Cellulose mill in Perdue Hill, Alabama. The $800 million investment will modernize, expand and streamline the facility's production capabilities.
The project, scheduled to begin in the fourth quarter of 2025 and conclude in 2027, will enhance and expand essential manufacturing equipment. This is expected to augment the mill's operational efficiency and increase its production capacity by about 300 tons per day.
Close to one million tons of fluff and market pulps will be produced yearly at the mill. A state-of-the-art digester, new pulp dryer and a more efficient power boiler will be installed.
Modifications and upgrades will also be made to the brown stock washing and recausticizing systems, recovery boiler, evaporators and lime kiln.
Once the project is completed, the Alabama River Cellulose mill will be the largest and one of the most technologically advanced softwood pulp mills in the U.S.
Softwood fluff and market pulps are used to make vital consumer goods such as baby diapers, adult incontinence and feminine hygiene products, facial tissue, kitchen towels, paper cups and plates and more. Demand for softwood pulp products is projected to grow by 3% annually over the next several years, and Georgia-Pacific seeks to meet that need through its investments at Alabama River Cellulose.
Georgia-Pacific is also invested in improving the plant's environmental performance. The planned improvements aim to reduce water usage, lower particulate emissions, make energy use more efficient, improve wastewater processing, capture more valuable byproducts and improve biomass recovery and utilization.
"Since it was acquired in 2010, Georgia-Pacific has invested more than $700 million in the Alabama River Cellulose mill, including an $80 million investment to expand fluff pulp capacity in 2022," said Munir Abdallah, president of GP Cellulose, a subsidiary of Georgia-Pacific. "Combined with the new funding, the facility will have received more than $1.5 billion in investments.
"Modernizing this mill reinforces our commitment to meeting our customers' current and long-term demand for high-quality fluff and market pulps. The investment also means our cellulose business will be well-positioned to meet the growing needs of emerging markets," Abdallah added.
Georgia-Pacific directly employs close to 2,400 employees and operates six facilities in Alabama, providing $238 million in direct wages and benefits. As of this year, the economic impact of the company contributes to 9,060 additional indirect jobs, which translates to $710 million in labor income in the state.
At the local level, the Alabama River Cellulose mill provides more than 3,000 direct and indirect jobs, and $188 million in direct and indirect compensation and benefits. Georgia-Pacific has invested more than $2.5 billion in capital improvement projects and acquisitions within the state of Alabama over the past decade.
Jeff Vermilyea, vice president of manufacturing at Alabama River Cellulose, noted, "The investments in our mill enables Georgia-Pacific to continue being a safe and reliable local employer. We appreciate the local support we've received over the years, and we look forward to the continued collaboration with our community partners for a long time to come."
Headquartered in Zug, Switzerland, GP Cellulose operates state-of-the-art pulp mills in the southeastern United States and has sales offices strategically located in Switzerland,the United States, Uruguay and Hong Kong. The company's brands include Golden Isles® fluff and Golden Isles CO®.
SOURCE: Georgia-Pacific |
U.S. DOC Initiates Antidumping Duty and Countervailing Duty Investigations of High Purity Dissolving Pulp from Brazil and Norway
 Sept. 8, 2025 - The International Trade Administration (ITA) posted a notice on its website that on September 3, 2025, the U.S. Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of high purity dissolving pulp from Brazil and Norway.
The U.S. International Trade Commission (ITC) is currently scheduled to issue its preliminary determination on September 26, 2025. If the ITC issues an affirmative preliminary determination, Commerce is scheduled to announce its preliminary determination on November 7, 2025, for the CVD investigation, and on January 21, 2026, for the AD investigation. These deadlines may be extended in accordance with the statute.
The petitioners are Rayonier Advanced Materials, Inc. (Jacksonville, Florida) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (Washington, DC).
The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements.
SOURCE: International Trade Administration |
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