HELSINKI (News release) -- UPM has signed an agreement to sell its Chapelle Darblay newsprint mill site to a consortium of two partners Samfi and Paprec France SAS. The transaction is subject to customary approvals.

The sale of Chapelle Darblay is an asset sale, and no personnel will be transferred. UPM has permanently ceased production and agreed a social plan for its employees at its Chapelle newsprint mill in Grand-Couronne, France in June 2020.

Samfi and Paprec plan to develop the site into a platform for the supply of green energy and the production of raw materials from recycling. The future site would consist of a sorting and packaging plant for paper and plastics, an on-site power generation facility using biomass and a production facility for renewable hydrogen.

Samfi and Paprec plan to invest approximately 450 million euros and to create 250 direct and 400 indirect positions.

"We are very pleased with the agreement. Samfi and Paprec will develop the site further, leveraging the very good 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," says Anu Ahola, Senior Vice President Operations, UPM Communication Papers.

"It is also important to underline that UPM will remain committed to the French newsprint market and we will continue close collaboration with our partners and customers here," says Ahola.