Jan. 16 (Bloomberg) -- UPM-Kymmene Oyj, Europe’s second- largest papermaker, rose the most in a week after closing down a paper mill in Albbruck, Germany.
UPM gained as much as 3.8 percent in intraday trading, adding 0.34 euros, to 9.25 euros at 3:42 p.m. in Helsinki, giving the company market value of 4.8 billion euros ($6.1 billion).
“The mill has been unprofitable for several years due to its age and small size of machines,” Duncan Lake, analyst at Royal Bank of Scotland in London, said in a note to clients. He has a “neutral” rating on the stock. “We see this as a positive in the longer term for the industry which has been suffering structural capacity.”
UPM will cut 508 jobs on Jan. 31 at the mill that had capacity of 320,000 tons of magazine paper. Shuttering the Albbruck plant finalizes the paper capacity reductions announced last August, the Helsinki-based company said in a statement yesterday.
--Editors: Kati Pohjanpalo, Christian Wienberg
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