One Market, Two Strategies: Why UPM and Palm Are Taking Different Bets on the Future of UK Paper
Introduction
The UK paper industry is undergoing a structural shift, and two recent developments illustrate just how differently producers are responding.
In August 2026, UPM expanded the product offering at its Caledonian mill in Scotland by introducing standard newsprint grades.
At almost the same time, Palm confirmed that its PM7 machine at King’s Lynn will be converted away from newsprint and into recycled corrugated case material from the first quarter of 2027.
At first glance, those decisions appear contradictory.
One producer is expanding its newsprint offering while another is moving one of Europe’s most significant newsprint machines into packaging.
In reality, both decisions reflect the same thing: paper manufacturers are becoming increasingly selective about where they believe long-term value will exist.
The Structural Decline of Newsprint
Demand for traditional graphic papers has been under pressure for years as newspapers, advertising and publishing continue to migrate towards digital channels.
Palm says demand for newsprint in Western Europe has fallen by around 60% over the past decade.
That decline has forced producers to reassess whether machines originally designed for high-volume newsprint production remain competitive.
King’s Lynn is a significant example.
PM7 is 10.6 metres wide and was originally built as one of Europe’s most modern newsprint machines.
Instead of closing the asset, Palm is investing in conversion.
From 2027, it is expected to manufacture lightweight corrugated case material from recycled fibre, with capacity reaching up to approximately 700,000 tonnes per year.
That represents far more than a simple grade change.
It is a strategic repositioning towards the packaging market.
Why Packaging Continues to Attract Investment
Packaging remains one of the most important growth areas within the wider paper industry.
Demand is being supported by:
- E-commerce
- Retail packaging
- Sustainability-driven substitution away from plastics
- Increasing use of recycled fibre
- Consumer demand for recyclable packaging
For paper mills with suitable assets, converting production towards containerboard or speciality packaging grades can therefore offer a route to extend the life of existing machinery.
But conversions are complex.
Stock preparation systems may need modification.
Refining requirements change.
Machine clothing, drying, strength properties and quality control all need to be reconsidered.
For employees, that means substantial technical change.
So Why Is UPM Expanding Newsprint?
UPM’s move at Caledonian demonstrates that declining markets can still contain attractive opportunities.
As capacity leaves a sector, the producers that remain can potentially strengthen their positions.
If customers still require newsprint but fewer mills are capable of supplying it competitively, well-positioned producers may be able to capture additional demand.
This is an important distinction.
A declining market does not necessarily mean every producer should leave it.
It means only the most competitive assets are likely to survive.
What These Changes Mean for Paper Mill Careers
Grade conversions create significant workforce implications.
A machine moving from newsprint into recycled containerboard may require employees to develop experience in:
- OCC and recovered fibre preparation
- Strength properties
- Recycled stock systems
- Chemical applications
- Containerboard quality specifications
- Different machine operating parameters
For engineers and technical leaders, major conversions also create opportunities in:
- Project engineering
- Commissioning
- Reliability
- Automation
- Process optimisation
- Maintenance planning
The strongest candidates in tomorrow’s paper industry may therefore be those who can adapt across grades rather than remaining specialists in only one product.
Recruitment Insight
Paper industry recruitment is increasingly being shaped by asset transformation.
When mills change grades, install new machinery or convert existing paper machines, they often need skills that do not already exist within the current workforce.
That creates demand for professionals who have previously completed machine conversions, start-ups or major rebuilds.
For employers, this type of experience is difficult to find.
For candidates who possess it, market value is likely to increase.
Looking for your next opportunity in the paper industry?
Explore the latest jobs across containerboard, tissue, speciality, recycled and traditional paper production on Mill Talent — the global careers platform dedicated to the paper industry.