The site of UPM’s Chapelle Darblay newsprint mill in France has been sold, the company having agreed a ‘social plan’ for staff last year.
The sale to a consortium of partners Samfi and Paprec France is subject to customary approvals.
No personnel are being transferred, UPM having permanently ceased production at the mill in Grand-Couronne in June 2020.
Samfi and Paprec plan to develop the site into a platform to supply green energy and produce raw materials from recycling. The site will be used for sorting and packaging for paper and plastics, an on-site power generation facility using biomass, and a production facility for renewable hydrogen.
The partners say they plan to invest about 450 million Euros and create 250 direct and 400 indirect jobs.
UPM Communication Papers operations senior vice president Anu Ahola says the company is very pleased with the agreement under which Samfi and Paprec will develop the site further, leveraging the location and infrastructure.
“The nature of the project is very much in line with UPM’s commitment to help build a future beyond fossils and will bring an innovative and sustainable investment to the region,” he said.
Ahola stressed that UPM would “remain committed” to the French newsprint market, continuing to collaborate with partners and customers.