UPM manufactures fibre products, wood products, molecular bioproducts and low-emission energy in six business areas. These business areas are connected with a common idea: to create value from renewable and recyclable raw materials by synthesizing them with know-how and technology.
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UPM Specialty Papers
UPM Communication Papers
UPM Plywood
UPM Fibres
UPM Fibres consists of pulp and timber businesses. UPM has five modern pulp mills: three in Finland and two in Uruguay, and also four sawmills in Finland. The pulp mills produce 5.8 million tons of high quality pulp annually. 27% of the company's comparable EBIT came from UPM Fibres in 2022.
In July 2019 UPM announced that it will invest US$2.7 billion in a eucalyptus pulp mill near Paso de los Toros in central Uruguay. In January 2022, UPM updated the total investment estimate to US$3.47 billion. The new pulp mill was started up in April 2023.
UPM Energy
UPM Energy's power generation capacity consists of hydropower, nuclear power and thermal power. UPM Energy is the second largest electricity producer in Finland. UPM owns 47.69% of Pohjolan Voima Oyj, which is a majority shareholder (58.5%) in Teollisuuden Voima Oyj (TVO). UPM also owns 9 hydropower plants in Finland. 18% of the company's comparable EBIT came from UPM Energy in 2022.
UPM Raflatac
UPM Raflatac manufactures labelling materials for branding and promotion and information labelling in the food, beverage, personal care, pharmaceutical and retail segments, for example. UPM Raflatac has 12 factories and 24 slitting and distribution terminals in all continents. 10% of the company's comparable EBIT came from UPM Raflatac in 2021.
UPM Specialty Papers
UPM Specialty Papers offers labelling and packaging materials as well as office and graphic papers for labelling, commercial siliconising, packaging, office use and printing. The paper mills are located in China, Germany and Finland. 7% of the company's comparable EBIT came from UPM Speciality Papers in 2022.
UPM Communication Papers
UPM has 13 paper mills in Finland, Germany, Great Britain, France, Austria and the United States. Several of the mills work simultaneously as recycling centres and as producers of bioenergy. In terms of revenue, paper production is still the largest business group of the company. 30% of the company's comparable EBIT came from UPM Communication Papers in 2022.
UPM Plywood
UPM is the largest plywood manufacturer in Europe. The plywood operations consists of eight plywood mills in Finland and Estonia. 5% of the company's comparable EBIT came from UPM Plywood in 2022.
Other businesses
UPM offers a wide selection of different services for forest owners. UPM owns 522,000 hectares of forest in Finland. All of the company's forests are certified.
Most of the wood needed for the UPM factories is acquired from private forests of Finland. UPM is acquiring all kinds of wood and uses it to produce pulp, paper, plywood, sawn timber and energy. UPM refines UPM Bonvesta properties from its real estates.
UPM Biofuels, UPM Biochemicals, UPM Biomedicals and UPM Biocomposites businesses form a business unit UPM Biorefining. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in the petrochemical industry. UPM Biochemicals offers and develops wood-based biochemicals. The product segments are glycols, lignin products and renewable functional fillers. UPM Biomedicals develops and supplies wood-based biomedical products for various applications. UPM Biocomposites offers composite materials for outdoor building material and consumer products. UPM is currently constructing a biochemical refinery in Leuna, Germany. The biorefinery is scheduled to start production by the end of 2023. The capital expenditure estimate is EUR 750 million.
Biofore
In 2009, UPM created the term "Biofore" to describe new forest industry. The Biofore term is also used in the company's slogan: UPM - The Biofore Company. In 2018, UPM launched brand promise 'UPM Biofore – Beyond fossils'. In 2021 UPM stated its purpose: 'We create a future beyond fossils'.
Global operations
UPM's products are manufactured in 11 countries and the company has a worldwide sales network. UPM's production plants are located in
China, Estonia, Finland, France, Germany, Malaysia, Poland, UK, Uruguay and USA.
China
UPM has two production units in China: UPM Changshu paper mill and UPM Raflatac, Changshu Labelstock factory. Changshu is located in the Province of Jiangsu by the Yangtze River, some 100 km from Shanghai.
France
UPM has one production unit in France. The UPM Raflatac labelstock factory located in Pompey, 10 km north of Nancy and 40 km south of Metz.
Germany
UPM has seven production units in Germany.
UPM Augsburg paper mill, located by the river Lech in the city of Augsburg, a town in southern Germany, some 65 km from Munich
UPM Ettringen paper mill, in the town of Ettringen
UPM Hürth paper mill, located in the town of Hürth
UPM Nordland Papier, located in Dörpen, a village in northwestern Germany, some 250 km from Hamburg
UPM Plattling paper mill, located in the town of Plattling
UPM Schongau paper mill, located in the city of Schongau, a town in Upper Bavaria
There is also a wood plastic composite factory in Germany: UPM ProFi, Bruchsal wood plastic composite factory, located in Bruchsal approximately 20 km northeast of Karlsruhe in the state of Baden-Württemberg. Distance to Frankfurt is some 120 km and to Stuttgart some 80 km.
UK
UPM has two production units in the United Kingdom.
UPM Caledonian paper mill, located in Irvine, North Ayrshire a coastal town in southwestern Scotland, 50 km (30 mi) from Glasgow.
UPM Raflatac labelstock factory, located in Scarborough.
Uruguay
UPM has a pulp mill in Fray Bentos, Uruguay. The mill produces bleached hardwood kraft pulp (BHKP) from eucalyptus and renewable energy in their recovery boilers and provides CO2-neutral biomass-based electricity for the Uruguayan markets. In 2011 UPM expanded plantation grounds in Uruguay. In February 2011, UPM announced a plan to build a second nursery in Uruguay to secure the availability of high-quality seedlings and seed material. Argentina and Uruguay had a conflict regarding UPM emissions in 2013. In 2020, UPM began the construction of its third nursery in Uruguay, located in Central Uruguay. The nursery, to be completed in 2022, will have an annual production capacity of more than 10 million seedlings.
Metsä Botnia, a part of Metsä Group, opened Fray Bentos factory in Uruguay in 2007. Until the end of 2009 the owners of Metsä-Botnia were M-real 30%, Metsä Group (ex Metsäliitto = Finn Forest) 23% and UPM-Kymmene (UPM) 47%, and since the end of 2009, UPM 91% and Metsä Group 9%.
Research and development
UPM Grada
UPM Plywood has developed a new way to manufacture layered composites and the new form of plywood is called UPM Grada. At the core of the new technology is a special adhesive film, which allows the plywood to be formed after manufacturing. UPM Grada Plywood can be safely recycled or burned at the end of its lifecycle. UPM Grada Plywood can be used e.g. in furniture. The Finnish furniture manufacturer Isku has introduced the new Kaava chair which demonstrates the capabilities of UPM Grada Plywood.
UPM ProFi
UPM ProFi composite is a Biofore material that combines the characteristics of cellulose fibres and plastic. Manufactured mainly from recycled raw material, the composite is suitable for use in patios, terraces, piers and playgrounds. The material does not require polishing, lacquer finishing or other surface finishing. The material was a result of UPM's own research and product development.
UPM ProFi has been used in the manufacture of a pedestrian walkway in the previously historic city of Ghent, Belgium.
UPM Formi
UPM Formi is a recyclable and odorless composite which can be used to replace plastic in many instances. UPM Formi composite granulates are manufactured from clean polymers and pulp. UPM offers the granulates in three grades for injection molding – Formi GP for general use, Formi SP for special surface, and Formi TP for technical applications. The UPM Formi -material has already been used in the manufacture of a mobile phone microscope, launched by KeepLoop Oy. The Finnish company, MySoda, designs and manufactures the first-ever sparkling water makers made of wood-based biocomposite, UPM Formi EcoAce. The biocomposite is made using certified renewable fibres and polymers derived from UPM BioVerno naphtha.
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