With the closure of the mill, UPM will reduce production of a total of 195,000 tons of its supercalendered paper capacity.

The closure will impact approximately 214 employees located at the mill site. Some employees will remain beyond May to maintain buildings, operate the hydro generating facilities and support activities related to the closing. All employment related actions will be handled in accordance with federal and state statutory requirements.

"Despite everyone's best efforts, the difficult decision has been made to cease paper production at Madison. Demand for SC papers declined significantly in 2015 and the decline is expected to continue. The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past," says Ruud van den Berg, Senior Vice President of UPM Paper ENA.

About Madison Paper Industries

Madison Paper Industries is a partnership of UPM and Northern SC Paper Corp., a subsidiary of the New York Times Company, producing approximately 195,000 tons of supercalendered paper on one paper machine. The mill employs more than 200 employees and is located in Maine, in the USA. The assets include 2 hydro power plants.