COPENHAGEN, May 29 (Reuters) - Finnish forestry firm UPM said on Wednesday it would close a newsprint mill and a fine paper machine in Germany, affecting 345 jobs overall, citing a decline in graphic paper demand and a significant overcapacity in the market.

UPM would book restructuring charges of 113 million euros ($122.65 million) in its second-quarter results, it said, adding that the planned actions were estimated to save 45 million euros annually.

($1 = 0.9213 euros) (Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)