UPM Ettringen Plant Closure Confirmed Following Agreement on Social Plan

The UPM Group and employee representatives have reached a consensus on a social plan for the closure of the Ettringen facility, officially setting the date for the cessation of operations. After extensive negotiations, both parties have finalized the necessary arrangements to manage the transition for affected staff members.

Originally, the company had planned to shut down the plant in mid-2025. However, the latest agreement has established that production at the Ettringen site will end by December 31, 2025, with the full closure of the facility scheduled for January 31, 2026. Following the halt in production, a dedicated team of approximately 25 employees will remain engaged throughout 2026 to ensure the safe decommissioning of equipment and the site itself. This is a significant reduction from the current workforce of about 190 employees.

The newly agreed social plan focuses primarily on severance packages for employees facing redundancy. While standard measures such as early retirement options could not be included, the plan does offer the opportunity for staff to join a transfer company, providing support for their transition to new employment. The company's management emphasized that the agreement aligns with industry norms and provides fair compensation for those affected, including specific provisions for employees nearing retirement age.

The negotiations leading up to this agreement were described as complex, with substantial differences in expectations between the company and the employee council. Ultimately, both sides worked constructively to reach a resolution that addresses the economic realities of the closure while offering practical support to the workforce. The social plan aims to mitigate the impact of the closure and facilitate career transitions for the employees involved.

The UPM Ettringen site has been an important part of the region's industrial landscape. The decision to close the facility is part of a broader restructuring effort by the UPM Group, aimed at optimizing operations and responding to evolving market conditions. The company has stated its commitment to a responsible wind-down process, ensuring that all legal and safety requirements will be met throughout the decommissioning phase.

As the closure process moves forward, employees and local stakeholders will be kept informed about the timeline and available support. The company has reiterated its intention to work closely with representatives to address concerns and provide assistance during the transition. The finalization of this social plan marks a key step in managing the closure in a manner that seeks to balance business objectives with the needs of the workforce.