GERMANY – UPM Raflatac, a global leader in label materials, has announced the permanent closure of its Kaltenkirchen factory in Germany as part of a strategy to enhance efficiency and competitiveness.
The closure will take place in stages throughout 2025 and will impact 154 employees.
Production from Kaltenkirchen will be redistributed to facilities in Poland and Finland for label materials, while graphics solutions will move to Belgium.
Operations at Kaltenkirchen will continue until the CM 3 coating line transfer is complete.
Tim Kirchen, Executive Vice President of UPM Raflatac, highlighted the strategic rationale behind the move, “These changes aim to accelerate growth in our Films and Graphics business by improving profitability and maximizing synergies.
“Centralizing production in cost-competitive locations will enhance product quality and customer service.”
International Paper to close facilities across four states, lay off hundreds
In a separate development, International Paper (IP) confirmed plans to close facilities in Illinois, Missouri, North Carolina, and Tennessee, affecting hundreds of workers. These closures are part of a “transformational journey” designed to improve profitability.
Last month, IP announced 650 layoffs across its headquarters in Memphis, Tennessee, and a corrugated sheet plant in San Antonio, Texas. The company has now added further closures:
In Tennessee, a container plant in Cleveland will shut down, affecting 115 employees. Workers are represented by USW Local 1337, though due to the closure’s permanent nature, no bumping rights will be available.
A WARN notice in North Carolina states that a container plant in Statesville will close, affecting 74 employees.
Meanwhile, a packaging facility near Kansas City will cease operations in Missouri, resulting in 150 layoffs.
In Illinois, a packaging facility in Rockford will also close, though the number of affected employees has not been disclosed.
According to company spokesperson Amy Simpson, operations at these sites will end by December 18.
Simpson emphasized that the closures while challenging, must focus resources on facilities that offer the most value.
“These actions allow us to increase investments where we can best serve our customers through improved quality, reliability, and service delivery,” she said.
IP is offering severance packages, outplacement services, and mental health resources to affected employees, who will also have the opportunity to apply for other positions within the company.
The company has assured customers of a seamless production transition to other facilities in its network, though specific locations were not disclosed.
Despite the layoffs, IP remains committed to maintaining high service levels and working closely with customers to ensure continuity.
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