UPM (company)

UPM (company)
Name	UPM
Foundation	1996
Location	Helsinki, Finland
Key people	Jussi Pesonen (President and CEO)
Industry	Forest industry
Products	Pulp, Paper, Label materials, Renewable diesel
Revenue	€10.4 billion (2022)
Num employees	~17,000
Website	www.upm.com

UPM (company). UPM is a global forest-based bioeconomy company headquartered in Helsinki, Finland. The company operates across six business areas, transforming renewable resources into sustainable products for a future beyond fossils. With production plants in 12 countries and a significant presence in markets worldwide, UPM is a leader in innovation within the pulp, paper, and advanced biomaterials sectors.

History

The company was formed in 1996 through the merger of Repola Ltd and its subsidiary United Paper Mills Ltd, creating one of the world's largest forest industry groups at the time. This consolidation was a strategic response to the evolving global paper industry and aimed to enhance competitiveness. Throughout the late 1990s and 2000s, UPM expanded its operations significantly, including major acquisitions such as the Champion International Corporation's fine paper division in the United States and the Haindl Papier group in Germany. A pivotal strategic shift began in the 2010s, marked by investments in new growth platforms beyond traditional paper, most notably the construction of the world-class UPM Paso de los Toros pulp mill in Uruguay and the UPM Biofuels biorefinery in Lappeenranta, Finland.

Operations

UPM's operations are organized into six global business areas. UPM Biorefining includes pulp production at mills in Finland, Uruguay, and the United States, supplying eucalyptus and northern bleached softwood kraft pulp. UPM Energy focuses on carbon-neutral electricity and heat production, largely from its own hydroelectric power plants and biomass. UPM Raflatac is a leading global supplier of pressure-sensitive label materials with a vast distribution network. UPM Specialty Papers produces label papers and packaging materials at mills across Europe. UPM Communication Papers manufactures graphic papers, including magazine paper and newsprint, at mills in Central Europe and North America. Finally, UPM Plywood produces WISA-branded plywood and laminated veneer lumber for the construction industry and transportation sector.

Products

The company's product portfolio is diverse, centered on wood-based renewable materials. Its core products include various grades of market pulp for global customers in the tissue paper and packaging industries. In papers, UPM produces uncoated fine paper, magazine paper, and newsprint. The UPM BioVerno line of renewable diesel and renewable naphtha, produced from crude tall oil, represents a significant innovation in biofuels. Other key products include self-adhesive label materials, flexible packaging materials, and specialty papers for food packaging and labeling. UPM also produces engineered wood products like plywood and laminated veneer lumber for industrial applications.

Sustainability and environmental impact

Sustainability is a central pillar of UPM's strategy, guided by its UPM Biofore strategy which aims to reduce reliance on fossil fuels. The company is committed to ambitious climate targets, including reducing greenhouse gas emissions from its own operations and increasing the share of renewable energy. UPM's forestry operations are certified under stringent schemes like the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification. Its UPM Lappeenranta Biorefinery is a landmark project in the European Union's bioeconomy, producing advanced biofuels that help decarbonize the transportation sector. The company actively participates in global initiatives such as the United Nations Global Compact.

Financial performance

UPM is a publicly listed company on the Nasdaq Helsinki stock exchange. For the fiscal year 2022, the company reported record-high sales of €10.4 billion, driven by strong performance in its Biorefining and Raflatac businesses. Its operating profit was approximately €1.8 billion, reflecting favorable market conditions for pulp and renewable fuels. The company maintains a strong balance sheet and has consistently provided dividends to its shareholders. Major capital expenditures in recent years have been directed toward the growth projects in Uruguay and Finland, positioning the company for long-term value creation in the bioeconomy.

See also

* Stora Enso * Metsä Group * Sappi * International Paper * Bioeconomy * Renewable resource

Category:Forestry companies of Finland Category:Pulp and paper companies Category:Companies listed on Nasdaq Helsinki