With employee consultations completed last month, UPM ceased production at its Chapelle newsprint mill in Grand-Couronne, France today.

The process was approved by French authorities on July 15. The closure impacts 228 people, with UPM saying it has offered support to employees.

The closure will reduce a total of 240.000 tonnes of its newsprint paper capacity.

UPM Communication Papers news and retail senior vice president Anu Ahola says UPM was in discussions with interested parties since announcing the sale in September. "However, we have not received binding offers by potential buyers," he said. "We remain committed to selling the mill assets if we receive a suitable offer."

The closure will result in annual savings of approximately 30 million Euros ($49.1 million).