"Newspaper" can indeed be used as a mass noun, and is being used in that way in the example in the question, as the answer by IMSoP correctly indicates.
However the wording "to make the paper for newspaper" is odd, as several comments suggest, particularly those of ColleenV. Newspaper (also called "newsprint" ) is a kind of paper. It is not made from some other paper, but from pulp, as most papers are. Thus the example would be better as:
Every year millions of acres of forest are cleared to make newspaper.
Even better would be:
Every year millions of acres of forest are cleared to make newsprint.
Every year millions of acres of forest are cleared to make newsprint for use in newspapers.
By the way to clarify the usage: the Merriam-Webster dictionary defines "Newsprint" as:
paper made chiefly from groundwood pulp and used mostly for newspapers
Newsprint is a low-cost, non-archival paper consisting mainly of wood pulp and most commonly used to print newspapers and other publications
The Cambridge dictionary defines "newsprint" as
cheap, low quality paper that newspapers are printed on.
"Newsprint" means the paper, not the ink. It is, however, sometime used for the finished publication:
John was surprised to find his doings discussed in newsprint.