Business
UPM and Sappi have signed a non-binding letter of intent to form a graphic paper Joint Venture
UPM-Kymmene Corporation ("UPM") and Sappi Limited ("Sappi") have signed a non-binding letter of intent to form a graphic paper joint venture ("the Joint Venture"). The Joint Venture would include the entire UPM Communication Papers business and Sappi's graphic paper business in Europe. The Joint Venture would be owned 50/50 by UPM and Sappi. It would operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries.
About this update from Upm-kymmene Oyj
[{"type":"text","content":"UPM-Kymmene Corporation Stock Exchange Release December 4, 2025 at 11.45 EET","length":76,"tagName":"p","attribs":{}},{"type":"text","content":"HELSINKI, Dec. 4, 2025 /PRNewswire/ -- UPM-Kymmene Corporation ("UPM") and Sappi Limited ("Sappi") have signed a non-binding letter of intent to form a graphic paper joint venture ("the Joint Venture"). The Joint Venture would include the entire UPM Communication Papers business and Sappi's graphic paper business in Europe. The Joint Venture would be owned 50/50 by UPM and Sappi. It would operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries.","length":557,"tagName":"p"},{"type":"text","content":""The proposed Joint Venture represents a decisive response to the structural changes in the European graphic paper industry. It would offer a path to strengthen the resilience of the industry and provide long-term commitment and supply security to graphic paper customers," says Massimo Reynaudo, President and CEO of UPM.","length":337,"tagName":"p"},{"type":"text","content":""UPM Communication Papers has reliably delivered value to customers as well as UPM shareholders. It has been the foundation upon which UPM has expanded its broad portfolio of sustainable material solutions. The planned Joint Venture would provide the best future for the UPM Communication Papers business, focus UPM's portfolio and strengthen our balance sheet," says Reynaudo.","length":391,"tagName":"p"},{"type":"text","content":"Securing long-term resilience and sustainability ","length":48,"tagName":"p"},{"type":"text","content":"The transaction would create a more efficient, adaptable and sustainable graphic paper business. It would create a structurally competitive cost base and supply security for the European and global customers.","length":208,"tagName":"p"},{"type":"text","content":"By strategic reallocation of production volumes to the most efficient paper machines, the Joint Venture would achieve more sustainable capacity utilization and stronger operational performance, while continuing to serve customers with a broad portfolio of graphic paper products.","length":279,"tagName":"p"},{"type":"text","content":"Overall, the Joint Venture would rationalize supply in an industry bur...