UPM-Kymmene Corporation is to buy Myllykoski Corporation and Rhein Papier GmbH as part of a strategy to improve its cash flow and mid-term profitability.

The two companies have seven publication paper mills in Germany, Finland and the US and total annual capacity of 2.8 million tonnes. Following the transaction, UPM’s balance sheet assets will increase by around €1.6m.

The acquisition is expected to be concluded during the second quarter of next year.