UPM-Kymmene is due to complete the partial demerger of its plywood business, WISA Group Plc, on 31 October 2026, with WISA shares scheduled to begin trading on Nasdaq Helsinki on 2 November 2026. Continuing operations reported second-quarter 2026 comparable EBIT of EUR 212m, up 71% year on year, on revenue of EUR 2.355bn, with the comparable EBITDA margin at 15.1% against 10.7% a year earlier. First-half operating cash flow was EUR 225m and net debt EUR 3.313bn.
Why this mattersSeparating plywood leaves UPM's remaining businesses to be valued on their own, at a point when continuing-operations margins have already widened by more than four points.
- Partial demerger of WISA Group Plc from UPM-Kymmene is targeted for completion on 31 October 2026
- WISA shares are scheduled to begin trading on Nasdaq Helsinki on 2 November 2026
- Comparable EBIT for continuing operations rose 71% year on year to EUR 212m in Q2 2026
- Q2 2026 continuing-operations revenue was EUR 2.355bn
- Comparable EBITDA margin improved to 15.1% from 10.7% a year earlier
- H1 2026 operating cash flow was EUR 225m and net debt EUR 3.313bn
UPM Adhesive Materials has started operations at a new label material distribution terminal in Delhi-NCR, India, covering about one acre with initial annual delivery capacity of 30-35 million square metres. The facility cuts delivery lead times for northern and eastern Indian narrow-web converters from 8-9 days to 1-2 days, replacing supply previously routed via western ports or UPM's Mumbai terminal.
Why this mattersA regional distribution hub shortens lead times for Indian label converters and supports UPM's push into premium wine and spirits label substrates in a growing market.
- Terminal became operational in Q3 2026
- Facility spans approximately one acre in Delhi-NCR
- Initial annual delivery capacity of 30-35 million square metres
- Lead times cut from 8-9 days to 1-2 days for northern and eastern Indian converters
- Previously, supply relied on western ports or UPM's Mumbai terminal
- UPM targets the North Indian wine and spirits label segment, including ice-bucket and high-humidity applications
UPM has inaugurated its biorefinery at Leuna, Germany, an investment of EUR 1.37bn (USD 1.54bn) with annual production capacity of 220,000 tonnes. The plant uses enzymatic hydrolysis to turn beechwood thinnings and sawmill residues sourced within about 200km into industrial sugars and lignin, feedstock for chemicals used in packaging, clothing, cosmetics, construction materials and tyres. Hydrolysis and lignin-based speciality chemicals have reached stable operation, and UPM is raising sales as the wider ramp-up continues.
Why this mattersA 220,000-tonne wood-to-chemicals plant gives packaging and other manufacturers fossil-free sugar and lignin feedstock at industrial scale, drawn from regional beechwood thinnings and sawmill residues.
- Investment of EUR 1.37bn (USD 1.54bn) at the Leuna site in Germany
- Annual production capacity of 220,000 tonnes of wood-based biochemicals
- Feedstock is beechwood forest thinnings and sawmill residues sourced within about 200km
- Enzymatic hydrolysis and lignin-derived specialty chemical production have reached stable operation
- Output can replace fossil-based inputs in packaging, clothing, cosmetics, construction and tyres
- UPM also runs a biorefinery in Lappeenranta, Finland
The European Commission says it is not convinced UPM and Sappi's planned graphic paper joint venture would bring enough cost, environmental or resilience benefits to offset the risk of higher prices, less choice and lower quality, and The Capitol Forum reports it doubts behavioural remedies will suffice as the companies discuss concessions. Gunnar Eberhardt, UPM's head of graphic papers and designated chief executive of the venture, says the project is on schedule with bank financing secured and expects a decision in early November 2026. He argues pricing power is not a risk in a market that shrank from 40 million tonnes in 2008 to 13 million tonnes in 2025, with 30% overcapacity.
Why this mattersA block would leave Europe's two largest graphic paper producers to manage a market with 30% overcapacity on their own, including any mill closure decisions.
- The Commission says it is not convinced the venture offers enough savings, environmental or resilience benefits to outweigh risks of higher prices, less choice and lower quality.
- The Capitol Forum reports the Commission doubts behavioural remedies will be enough for the EUR 1.42bn (USD 1.60bn) venture while the companies discuss concessions.
- The parties presented their case at an oral hearing on 15 September 2026; UPM expects a decision in early November 2026 and the venture to be in place in early 2027.
- Gunnar Eberhardt of UPM is designated chief executive and Stephen Blyth of Sappi chief financial officer; bank financing is secured.
- European graphic paper consumption fell from 40 million tonnes in 2008 to 13 million tonnes in 2025, with 30% overcapacity and 8 million tonnes expected in 2030.
- If cleared, about 2,500 employees and 1.2 million tonnes of German graphic paper output would move into the venture.
InfraLeuna, operator of the Leuna chemical park in Germany, has commissioned a purpose-built anaerobic wastewater pre-treatment plant for UPM's biochemicals biorefinery, investing EUR 42.7m in total, EUR 36.7m for the plant and EUR 6m for biogas feed-in infrastructure. The unit can treat up to 4,000 cubic metres of wastewater a day, cuts organic load by at least 80 percent, and generates about 6 MW of biogas fed into the site's gas grid, with commissioning proceeding in stages as UPM ramps up discharge volumes.
Why this mattersThe dedicated treatment and energy-recovery infrastructure removes an operating bottleneck for UPM's large-scale biochemicals plant, a reference project for bio-based inputs relevant to packaging.
- InfraLeuna invested EUR 42.7m in total: EUR 36.7m for the plant and EUR 6m for a biogas feed-in system.
- The plant treats up to 4,000 cubic metres of wastewater a day from UPM's biorefinery at Leuna, Germany.
- The process cuts chemical oxygen demand by at least 80 percent and generates about 6 MW of biogas continuously, fed into the site's natural gas grid.
- Commissioning is proceeding in phases as UPM gradually increases wastewater discharge while bioreactors are seeded with specialised anaerobic bacteria.
- The plant was custom-built by InfraLeuna for UPM's biorefinery process rather than as a standard design.
- The Leuna biorefinery is described as Europe's largest investment in biochemicals.
Dutch chemicals technology group Avantium has carved out its Parana bio-polyester technology into an independent company, Parana Materials, based at Brightlands Chemelot Campus in Geleen. Parana will lease and operate Avantium's existing polymerisation pilot plant, with Avantium retaining ownership of the installation and a minority stake in the new company. Funding comes from LIOF Participatiefonds, the founders, the Just Transition Fund and the Dutch DEI+ innovation scheme, though amounts were not disclosed.
Why this mattersAvantium narrows its focus to FDCA and PEF while a dedicated vehicle advances renewable polyesters aimed partly at packaging, a common pattern for scaling bio-based material platforms.
- Avantium transfers its Parana polyester technology, IP, projects and a dedicated team into new independent company Parana Materials.
- Parana Materials is based at Brightlands Chemelot Campus in Geleen and leases Avantium's existing polymerisation pilot plant, which Avantium continues to own.
- Funding comes from LIOF Participatiefonds, the founders, the Just Transition Fund and the DEI+ Dutch innovation scheme; amounts undisclosed.
- Avantium retains a minority stake in Parana Materials and keeps access to the pilot plant for its own FDCA and PEF technology.
- Former Avantium technology director Gert-Jan Gruter joins Parana Materials as CTO; Willem-Jan Meijer, previously of Avantium and dab.bio, becomes CEO.
- Parana's renewable polyesters, including PISA, PISOX, PEIT and PEIF, target applications in packaging, consumer goods and speciality materials.
- First industrial tests of PISA, PISOX and PEIT/PEIF are planned for 2027, targeting rigid luxury packaging such as bottles
- First kilotonne-scale delivery is planned for 2028, with licensing to partners from 2030
- PISOX, an oxygen-barrier copolyester said to be home-compostable within months and to degrade in seawater, is due to scale production in 2027 and launch from 2029
Sappi has appointed Kirk Ross as president and chief executive of Sappi North America from 1 January 2027, succeeding Mike Haws, who retires in February 2027 after seven years in the role. Matt Archambeau becomes vice-president of manufacturing effective 1 October 2026, reporting to Ross.
Why this mattersThe succession keeps continuity at the unit leading Sappi's packaging-paper build-out in North America, including the Somerset mill conversion.
- Kirk Ross becomes president and CEO of Sappi North America effective 1 January 2027
- Mike Haws retires in February 2027 after 14 years at Sappi, including seven as North America CEO
- Matt Archambeau becomes vice-president of manufacturing effective 1 October 2026, reporting to Ross
- Ross previously led the Elevate project converting and expanding Somerset mill's PM2 machine for packaging products
- Haws oversaw integration of the Matane pulp mill and a return to record profitability in 2021-2022
- Kirk Ross is 51 years old
- Sappi shares are down 46 percent year to date, with a market capitalisation of about USD 471m (EUR 420m)
UPM and Sappi's proposed joint venture combining their communication paper businesses, valued at EUR 1.42bn (USD 1.62bn), faces a likely European Commission prohibition, Reuters reported citing people familiar with the matter, after the companies offered no concessions and did not persuade regulators at a closed hearing. The Commission must decide by 11 November 2026; in August 2026 it issued a statement of objections saying the deal could reduce competition and raise prices in graphic paper used for magazines and books. Both companies declined to comment to Reuters.
Why this mattersA veto would remove the planned consolidation of Europe's shrinking graphic paper capacity, leaving both producers to manage overcapacity independently.
- The proposed joint venture would combine UPM and Sappi's communication paper businesses at an enterprise value of EUR 1.42bn (USD 1.62bn).
- The European Commission must rule on the deal by 11 November 2026, according to Reuters sources.
- UPM and Sappi have not offered concessions and did not persuade regulators at a closed hearing, Reuters reported.
- Difficulty finding a buyer for potential divestment assets has complicated a remedy, per the sources.
- The Commission issued a statement of objections in August 2026, citing risk of reduced competition and higher prices in graphic paper, including for magazines and books.
- The partners signed the agreement in May 2026, expect annual synergies of about EUR 100m and UPM has said it targets completion by the end of 2026.
- European graphic paper demand fell from 40 million tonnes in 2008 to 13 million tonnes in 2025, with mills running about 30% overcapacity, and is forecast to fall further to 8 million tonnes by 2030
- If approved, about 2,500 employees and 1.2 million tonnes of German graphic paper production would move into the new joint venture
- UPM says financing for the joint venture through banks is already secured
- UPM's Gunnar Eberhardt, designated CEO of the joint venture, said the companies still expect a positive Commission decision
- Oral hearing before the Commission took place on 15 September 2026, with a decision now expected in early November 2026.
- UPM says financing for the joint venture is secured and its proposed leadership is named: Gunnar Eberhardt as CEO, Sappis Stephen Blyth as CFO.
- UPM Gunnar Eberhardt says a rejection would be a missed opportunity for the industry, employees and Europe.
- If completed, about 2500 employees and 1.2 million tonnes of German graphic paper production would move into the new company.
- EU Commission says the JV would create a market leader able to raise prices, reduce choice and lower quality for customers
- Companies held an oral hearing with the Commission on 15 September 2026, with a decision expected in early November 2026
- European graphic paper demand fell from 40 million tonnes in 2008 to 13 million tonnes in 2025, with mills at 30% overcapacity, forecast to fall to 8 million tonnes by 2030
- UPM's Gunnar Eberhardt is designated CEO of the JV, with Sappi's Stephen Blyth as CFO; bank financing is secured and integration planning has begun
- European Commission issued a Letter of Facts restating serious concerns about the proposed joint venture.
- UPM disagrees with the Commission's preliminary assessment and will propose remedies that exclude divestments.
- China, South Africa and the United States have already cleared the transaction.
- Commission's final decision is now expected by year-end 2026 or shortly after.
- UPM and Sappi received a Letter of Facts from the European Commission on or before 5 October 2026 restating serious concerns about the joint venture.
- The companies plan to submit remedy proposals but rule out divestments.
- China, South Africa and the U.S. have already approved the transaction.
- The EU's draft revised Merger Guidelines, published 30 April 2026, are cited by UPM as relevant to the assessment.
- The EU extended its Phase 2 remedy deadline by 20 days to 9 December 2026.
- UPM disclosed the Commission's renewed concerns on 5 October 2026 via a Letter of Facts.
- UPM and Sappi intend to offer remedies without divestments.
- The Dörpen mill in Germany is among the assets covered by the planned UPM-Sappi tie-up.
- UPM and Sappi have rejected a proposal put forward by the European Commission to address its competition concerns.
EU regulators are preparing to block the EUR 1.42bn (USD 1.63bn) joint venture between UPM and Sappi after the companies declined to offer concessions on competition concerns, and did not convince officials of the deal's merits at a closed-door hearing in the week to 18 September 2026, according to people familiar with the matter. The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating the largest supplier in Europe. A final Commission decision is due by 11 November 2026.
Why this mattersA prohibition would keep European printing paper fragmented and mark a rare EU block of forestry-sector consolidation, hardening scrutiny of further tie-ups.
- EU regulators are preparing to veto the EUR 1.42bn (USD 1.63bn) joint venture after the companies declined to offer remedies, according to people familiar with the matter.
- Closed-door hearings in the week to 18 September 2026 did not persuade regulators of the merits of the deal.
- An asset-sale remedy is not being pursued because of difficulties in finding a buyer.
- The Commission sent a statement of objections in August 2026, saying the deal could reduce competition in communication paper used for magazines and books.
- The venture would combine UPM's European and US communication paper business with Sappi's European communication paper and speciality paper operations, creating Europe's largest supplier.
- The Commission must decide by 11 November 2026.
- Difficulty finding a buyer for potential divestment assets has complicated a remedy, the Commission said.
- UPM and Sappi have not offered concessions to address the Commission's concerns, per Reuters.
- As of 23 September 2026 the European Commission had not yet ruled on the Sappi-UPM joint venture.
The Finnish Financial Supervisory Authority has approved a supplement to the demerger and listing prospectus for WISA Group Plc, the entity UPM-Kymmene is spinning off onto Nasdaq Helsinki. The supplement confirms Lasse von Hertzen, previously interim CFO, as permanent Chief Financial Officer of WISA. The demerger is planned to complete on 31 October 2026, with WISA shares expected to start trading on 2 November 2026.
Why this mattersThe spin-off creates a separately listed entity carved out of UPM, letting investors value the unit independently of the parent group.
- Finnish FSA approved the prospectus supplement on 18 September 2026
- Demerger of WISA from UPM-Kymmene planned to complete 31 October 2026
- WISA shares expected to begin trading on Nasdaq Helsinki on 2 November 2026 or shortly after
- Lasse von Hertzen appointed permanent CFO of WISA Group Plc, having served as interim CFO
- WISA's Group Leadership Team now comprises seven senior executives including CEO Tuija Suur-Hamari
- Appointees remain in current UPM roles until the demerger takes effect
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Futamura and Bio4life have developed a certified home and industrially compostable pressure-sensitive adhesive label for fresh produce, combining Futamura's NatureFlex cellulose film with Bio4life's BioTAK adhesive. The product is aimed at retailers and packers seeking to remove conventional plastic fruit stickers, which the companies say contaminate organic waste and anaerobic digestion streams. No commercial volumes or launch customers were disclosed.
Why this mattersA compostable fruit sticker closes a long-standing contamination gap in food waste and anaerobic digestion streams as retailers face rising compostability requirements.
- Futamura's NatureFlex cellulose film is combined with Bio4life's BioTAK adhesive technology in the new label
- The label is certified for both home and industrial composting
- It targets fresh produce such as apples, avocados, kiwis and citrus fruit, replacing fossil-based plastic stickers
- Conventional PSA labels are cited as a contamination risk in organic waste and anaerobic digestion streams when disposed with produce skins
- NatureFlex films are offered in clear, white or metallised variants and can be used at thinner grammages than other compostable alternatives
- PPWR implementation date for the affected packaging rules is 12 February 2028
- Companies say only about one harvest cycle remains for produce industry trials before compliance is due
- Companies frame the launch as leaving packers roughly one harvest cycle to trial the label before PPWR's 12 February 2028 deadline
- The EU Packaging and Packaging Waste Regulation's 12 February 2028 start date leaves the fresh produce sector one remaining harvest cycle to trial and test compliant labels.
- Companies say the produce industry has one remaining harvest cycle to trial compliant labelling before PPWR applies
- Futamura operates film production sites in the UK, US and Japan
- PPWR applies from 12 February 2028, leaving roughly one harvest cycle for converters to trial alternatives
- Futamura states NatureFlex breaks down during anaerobic digestion, reducing digestate contamination risk.
Finland's forest management associations opened the Pino digital marketplace for mandate-based timber sales on 15 September, and neither Metsä Group nor Stora Enso intends to use it. Metsä Group has confirmed it will not register, arguing an independent marketplace must stop price and bid information from advantaging one participant; Stora Enso says it will keep bidding in power-of-attorney sales but has raised information technology questions. The associations arrange 15m-20m cubic metres of such sales a year, so bids risk being split across Pino, the rival Kuutio platform, buyers' own systems and email.
Why this mattersA fragmented timber-tendering landscape raises procurement costs and reduces price transparency for two of Europe's largest fibre producers.
- Pino, built by MHYP with farmers' organisation MTK, opened on 15 September 2026
- Finnish forest management associations arrange 15m-20m cubic metres of mandate-based timber sales a year
- Metsä Group has publicly confirmed it will not register for Pino, citing concerns over access to commercially sensitive bid data
- Stora Enso will keep participating in power-of-attorney sales but has raised information technology questions over Pino
- UPM had not reached a final decision and said it would continue using the rival Kuutio platform
- Metsä Group is a shareholder in Kuutio and says mandate-based deals can also be handled through Kuutio or by email
UPM Specialty Materials has launched UPM Asendo 80, a grease-resistant label face paper that applies the company's packaging-paper barrier technology to labels for the first time without using PFAS. The 80 gsm grade targets food-contact and grease-sensitive label applications such as olive oil packaging, following the EU's PPWR PFAS restriction on food-contact packaging, which took effect on 12 August 2026. The paper is FSC or PEFC certified and meets FDA and German BfR food-contact requirements.
Why this mattersPFAS-free validated face papers give label converters a route to compliant food-contact products as EU rules tighten and give paper an edge over film alternatives.
- UPM Asendo 80 is an 80 gsm label face paper extending UPM's barrier paper technology to labels for the first time
- The grade does not use PFAS chemistry and each production stage is tested by independent third-party laboratories
- EU PPWR restriction on PFAS in food-contact packaging became applicable across the EU on 12 August 2026
- Product meets FDA and German BfR food-contact requirements and is available FSC or PEFC certified
- Compatible with a range of adhesive types and suited to UV Flexo and UV-inkjet printing
- Target applications include olive oil packaging and other grease-sensitive food-contact labels
- UPM Asendo 80 has been filed to demonstrate compliance with EU PPWR requirements
- UPM is extending barrier paper, already used in flexible packaging, food inlays and its Asendo 80 grease-resistant label paper, into self-adhesive label stock, per Label and Narrow Web, 22 September 2026
- No technical data sheet, basis weights, barrier specifications, adhesive-compatibility data or pricing have been disclosed for the new self-adhesive grade
Sappi chief executive Steve Binnie attended a closed-door EU hearing on 15 September 2026 to defend the EUR 1.42bn (USD 1.64bn) communication paper joint venture with UPM-Kymmene. The European Commission warned the companies last month that the deal may restrict competition in communication paper markets and could raise prices. Brussels must decide on the deal, which would create Europe's largest communication paper player, by 11 November 2026.
Why this mattersA Commission veto or forced remedies would reshape European communication paper supply and set a precedent for consolidation among fibre-based paper producers.
- Deal value is EUR 1.42 billion ($1.64 billion)
- Joint venture combines UPM's European and US communication paper business with Sappi's European communication paper and speciality paper business
- European Commission sent a charge sheet last month citing potential competition restriction in magazine and book paper markets
- Closed-door hearing held in Brussels on 15 September 2026 attended by senior Commission officials and company lawyers
- Regulators warned the combined entity could increase prices
- Commission decision deadline is 11 November 2026
UPM and Sappi have conditionally nominated four additional executives to the management team of their planned graphic paper joint venture, adding to the CEO and CFO named earlier in September 2026. The nominations remain conditional on regulatory approval and completion of the transaction, which is under EU Phase II merger review with final resolutions expected by end-2026.
Why this mattersAdvancing management appointments signals the two paper makers are preparing for closing despite an ongoing EU antitrust review of their graphic paper tie-up.
- UPM and Sappi conditionally nominated four executives to the joint venture management team on 14 September 2026.
- Gunnar Eberhardt and Stephen Blyth were nominated earlier in September 2026 as CEO and CFO respectively.
- The joint venture was announced in 2025 and definitive agreements signed in May 2026.
- EU merger review entered Phase II on 28 April 2026, with final regulatory resolutions expected by end-2026.
- Marco Eikelenboom, currently CEO of Sappi Europe, is nominated as Senior Vice President Sales and Marketing.
- Until closing, UPM and Sappi continue to operate their respective businesses independently.
Finnish company Innomost has developed Suberinno Suberin, a barrier material derived from birch bark suberin, aimed at replacing fossil-based coatings in fibre-based packaging. The material targets moisture, grease and oxygen barrier properties for food and non-food paper and board packs. Innomost currently produces the material at its Kokkola, Finland facility and plans to build an industrial-scale plant within two to three years.
Why this mattersA commercially scalable bio-based multi-barrier coating could let paper and board packaging displace plastic laminates while meeting PPWR recyclability requirements.
- Innomost sources birch bark from an existing side stream of the Nordic forest industry.
- The product is marketed as Suberinno Suberin.
- It can provide moisture, grease and oxygen barrier properties in a single material.
- Production currently takes place at Innomost's facility in Kokkola, Finland.
- Innomost plans to build an industrial plant and scale production within two to three years.
- University of Oulu is separately developing suberin coatings with UPM and Metsä Board.
Sappi and UPM have nominated Gunnar Eberhardt as CEO and Stephen Blyth as CFO of their planned graphic papers joint venture, subject to regulatory clearance. The move comes after the European Commission issued a statement of objections roughly three weeks earlier, citing concerns that the merger could raise prices and reduce quality in communication papers. Sappi shareholders had already approved the deal with a 98.5% majority, and management aims to complete the transaction by the end of 2026.
Why this mattersRegulatory pushback on the Sappi-UPM graphic papers combination signals scrutiny that could delay or reshape a deal meant to consolidate a shrinking market.
- Gunnar Eberhardt nominated CEO and Stephen Blyth CFO of the planned Sappi-UPM graphic papers joint venture on 9 September 2026, subject to regulatory approval
- European Commission issued a statement of objections about three weeks earlier, citing risks of higher prices and lower quality in communication papers
- Sappi shareholders approved the joint venture with a 98.5% majority
- Sappi management targets completion of the transaction by the end of 2026
- Sappi reported Q3 adjusted EBITDA of USD 53m, down 34% year on year, within its July guidance
- Sappi has removed USD 120m of costs, half of it fixed-cost reductions mainly at European sites
- EU merger review of the UPM-Sappi joint venture remains in Phase II, entered in April 2026, with a final Commission decision expected by the end of 2026
- Until the deal closes, UPM and Sappi continue to operate their respective graphic paper businesses independently
