|Traded as||OMX: UPM1V
|Industry||Paper, pulp and timber|
|Key people||Björn Wahlroos (Chairman), Jussi Pesonen (President and CEO)|
|Products||Publication and fine paper, wood products|
|Operating income||€548 million|
|Total assets||€14.60 billion|
|Total equity||€7.46 billion|
UPM-Kymmene Corporation (Finnish: UPM-Kymmene Oyj; usually referred to simply as UPM) is a Finnish pulp, paper and timber manufacturer. UPM-Kymmene was formed by the merger of Kymmene Corporation and Repola Ltd and its subsidiary United Paper Mills Ltd in 1996. UPM consists of three business groups: energy and pulp, paper, and engineered materials. The Group employs around 24,000 people and it has production plants in 17 countries.  UPM shares are listed on the NASDAQ OMX Helsinki stock exchange.
- 1 Board of Directors
- 2 Group Executive Team
- 3 History
- 4 Businesses
- 5 Biofore
- 6 Global operations
- 7 Biofuels
- 8 Research and Development
- 9 See also
- 10 References
- 11 External links
Board of Directors
Board of Directors 30 March 2012
- Björn Wahlroos, Chairman
- Berndt Brunow, Deputy Chairman
- Matti Alahuhta
- Karl Grotenfelt
- Wendy E. Lane
- Jussi Pesonen
- Ursula Ranin
- Veli-Matti Reinikkala
- Kim Wahl
Group Executive Team
- Jussi Pesonen, President and CEO
- Tapio Korpeinen, CFO
- Heikki Vappula, President, Energy and Pulp Business Group
- Jyri Ovaska, President, Paper Business Group
- Jussi Vanhanen, President, Engineered Materials Business Group
- Pirkko Harrela, Executive Vice President, Corporate Communications
- Juha Mäkelä, General Counsel
- Riitta Savonlahti, Executive Vice President, Human Resources
- Hartmut Wurster, Executive Vice President, Technology
The company's oldest mill is Papeteries de Docelles located in northeastern France, which produced traditional handpaper at the end of 15th century. The mill got its first paper making machine in 1830's.
The company has a long tradition of forest industries in Finland. There the company's first paper mills and sawmills were put into operation in the beginning of the 1870s. Pulp manufacturing began in the 1880s and paper converting in 1920's. The company started manufacturing plywood in the 1930s. Several Finnish forest industry companies have merged with the forerunner companies of UPM, such as: Walkiakoski, Jämsänkoski, Kaukas, Halla, Kajaani, Toppila, Kymmene, Kuusankoski, Kymi, Voikkaa, Lohjan Paperi Oy, Wilh. Schauman, W. Rosenlew, Raf. Haarla and Myllykoski.
2000 - 2010
Due to worldwide overproduction of paper UPM announced a cost reduction program in 2006. Voikkaa paper mill in Kuusankoski was closed. Nearly 3,000 employees in Finland were laid off. After the closure the area has been transformed into Voikkaa business area.
Also a mill in Miramichi, New Brunswick was closed in 2007 because of economic pressures in the North American forest industry.
In September 2008 UPM closed Kajaani paper mill and Tervasaari pulp mill. 1,100 employees were laid off. The former premises of the Kajaani mill were turned into a business park called Renforsin Ranta.
In 2009 UPM Shotton Paper won the Queen's Award for Enterprise.
In 2010 UPM announced it will acquire Myllykoski corporation and Rhein Papier GmbH, which consists of seven publication paper mills in Germany, Finland and the United States. The transaction has been approved by regulatory authorities in 2011.
In 2011, UPM’s environmental investments totalled EUR 14 million (18 million), the largest being low-NO x burners for gas boilers at the Schongau paper mill in Germany.
UPM products include pulp, paper, plywood, sawn timber, labels and composites, bioenergy, biofuels for transport, biochemicals and nano products. The company is the world's leading producer of graphic papers and second-largest producer of self-adhesive label materials.
The Energy Business Group produces electricity with nuclear power, water power, condensing power and wind power. UPM is the second largest owner of nuclear power in Finland with 541 megawatts through owning over 40% of nuclear operator Pohjolan Voima. UPM also owns 9 hydro power plants in Finland.
UPM will begin the production of coated fine paper sheets at its Kymi Mill in Kouvola in autumn 2012.
UPM is divided into three business groups:
- Pulp and Energy (which is also home to Forest and Timber businesses)
- Engineered Materials (comprises the Label (branded UPM Raflatac) and Plywood businesses)
UPM has created the biofore term to describe new forest industry. Bio stands for sustainable solutions and environmental performance. Fore stands for forest and the company's position at the forefront of the development. UPM creates value from renewable and recyclable materials.
The company's key areas in environmental responsibility are sustainable products, climate, water, forest and waste.
UPM's products are manufactured in 16 countries and the company has a worldwide sales network. UPM's production plants are located in Australia, Austria, Brazil, China, Estonia, Finland, France, Germany, Malaysia, Poland, Russia, Spain, South Africa, UK, Uruguay and USA.
UPM owns 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. In 2012 UPM announced that it will build a new woodfree speciality paper machine at its Changshu mill in China. The machine will start up by the end of 2014.
UPM owns 5 production units in France.
- UPM Chapelle Darblay paper mill, located near Rouen, France's major port for wood and paper products.
- UPM Docelles paper mill. Docelles, a small village in the Vosges county in north eastern France
- UPM Stracel paper mill, located in Strasbourg, in eastern France some 500 km from Paris
There is also a further processing mill in France: UPM Aigrefeuille Further Processing Mill, located near the town of La Rochelle, which is some 450 km from Paris
UPM owns 8 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
- UPM Schwedt paper mill, located in Uckermark in Brandenburg, near the German-Polish border
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 120km and to Stuttgart some 80km.
UPM owns 3 production units in the United Kingdom.
- UPM Caledonian paper mill, located in Irvine, North Ayrshire a coastal town in southwestern Scotland, some 30 miles from Glasgow
- UPM Shotton paper mill, located in Shotton in the district of Deeside in the county of Flintshire in northeastern Wales, one of the most beautiful parts of the country, close to the estuary of the River Dee. Distance some 8 miles to Chester, 35 miles to Manchester.
There is also a labelstock factory in the UK: UPM Raflatac, Scarborough.
UPM has a pulp plant in Fray Bentos, Uruguay. The productions located in Uruguay consist of bleached hardwood kraft pulp (BHKP) from eucalyptus. UPM’s pulp mills produce renewable energy in their recovery boilers and provide 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. Argentine and Uruguay had conflict of UPM emissions in 2013.
Metsä Botnia, a part of Metsä Group, opened Fray Bentos factory in Uruguay in 2007. It produce annually a million tonnes cellulose. Until end of 2009 owners of Metsä-Botnia were M-real 30%, Metsä Group (ex Metsäliitto = Finn Forest) 23% and UPM-Kymmene (UPM) 47%, and since end of 2009 UPM 91% and Metsä Group 9%.
UPM was criticized by Greenpeace from the pulp commerce with APRIL in November 2009. At the time Greenpeace stopped APRIL from cutting down rain forest in Indonesia Sumatra. UPM informed that the pulp trade with April ends in near months as its new factory in Uruguay will start. UPM does not practice pulp trade with APRIL anymore.
Table of production sites
|Country||Production type||Production Units|
|Australia||Label||UPM Raflatac, Melbourne|
|Forest and Timber||UPM Steyrermühl sawmill|
|Brazil||Label||UPM Raflatac, Rio de Janeiro|
|Label||UPM Raflatac, Changshu|
|Estonia||Plywood||Otepää plywood mill|
|Label||UPM Raflatac, Tampere|
|Forest and Timber||
|Label||UPM Raflatac Pompey, Nancy|
|Forest and Timber||UPM Aigrefeuille Further Processing Mill|
|Other||UPM ProFi, Bruchsal (wood plastic composite)|
|Malaysia||Label||UPM Raflatac, Johor|
|Poland||Label||UPM Raflatac, Biskupice Podgórne|
|Russia||Plywood||UPM Chudovo plywood and veneer mill|
|Forest and Timber||UPM Pestovo sawmill and further processing mill|
|Spain||Label||UPM Raflatac, Polinyà|
|South Africa||Label||UPM Raflatac, Pinetown|
|Label||UPM Raflatac, Scarborough|
|Uruguay||Pulp||UPM Fray Bentos pulp mill|
UPM aims to become a major player in advanced biofuels. The company is developing new business on wood based biofuels for transport. The brand name for the future biofuels of UPM is UPM BioVerno. The production concepts are based on non-food raw materials and they result in a significant reduction of greenhouse gas emissions.
UPM is to invest in a biorefinery producing biofuels from crude tall oil in Lappeenranta, Finland. The biorefinery will produce annually approximately 100,000 tonnes of advanced second generation biodiesel for transport. Construction of the biorefinery will begin in the summer of 2012 at UPM’s Kaukas mill site and be completed in 2014. UPM’s total investment will amount to approximately EUR 150 million. The construction of the biorefinery will offer work for nearly 200 people for approximately two years. When production commences, the biorefinery will directly employ nearly 50 people and indirectly about 150 people.
UPM is planning to produce high-quality advanced biodiesel from forest energy wood. The raw material to be used in the production of UPM's biodiesel would mainly consist of sustainably sourced energy wood: logging residues, woodchips, stumps and bark. UPM has been developing gasification technology for biodiesel production with Andritz/Carbona. The initial testing programme was completed in the United States as planned. UPM's biodiesel is well suited for the current diesel motor technology and fuel distribution infrastructure.
Bio oil will substitute heavy and light fuel oils in heating applications. The future applications of bio oil could be electricity production and transportation fuels. Pilot testing started in 2009 in Metso's Research and Development Centre in Finland. The end product has already been tested in one of the Fortum's district heating boiler plants.
Research and Development
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 composite is a material that combines the best characteristics of cellulose fibres and plastic. Manufactured mainly from recycled raw material, the composite has proven to be tough and humidity resistant. The material is suitable for use in patios, terraces, piers and playgrounds. UPM ProFi has been used in the manufacture of a pedestrian walkway in the historic city of Ghent, Belgium.
UPM ForMi is a recyclable and odorless composite. 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.
UPM Biofibrils can be used as an additive in e.g. paints and coatings, concrete oil drilling fluids and various other industrial applications for stabilization of particles. The raw material of UPM Biofibrils is wood. The product often offers a more environmental friendly solution to traditionally used alternatives. UPM Biofibrils can help make a product stronger, lighter or thinner, depending on the end use.
World Design Capital Helsinki 2012
UPM takes part in the World Design Capital Helsinki 2012 -year. Helsinki offers a meeting place in the centre of the city: a wooden pavilion, showcasing UPM wood products as the main building material. The pavilion results from an extensive collaboration between Aalto University, the Design Museum, the Museum of Finnish Architecture and UPM. The pavilion provides an opportunity to demonstrate how UPM´s wood products and composites are implemented to meet with world class design.
- Alholmens Kraft Power Station
- Stora Enso
- Svenska Cellulosa Aktiebolaget
- List of Finnish companies
- UPM Annual Report 2013
- UPM Annual Report 2013
- UPM Annual Report 2013
- "UPM-Kymmene Oyj". Business Information System. Helsinki: The National Board of Patents and Registration and the Tax Administration, Finland. Retrieved 5 October 2011.
- UPM Annual Report 2011
- UPM Annual Report 2011
- Argentiina ja Uruguay tukkanuottasilla UPM:n sellutehtaan päästöistä 7.10.2013
- Metsä-Botnian Uruguayn sellutehdas kokonaan UPM:lle yle 7.2009
- Greenpeace pysäytti hakkuut suosademetsässä - myös UPM syytettynä yle 12.11.2009
- UPM stock exchange release 1 February 2012, http://www.upm.com/EN/MEDIA/All-news/Pages/UPM-to-build-the-world’s-first-biorefinery-producing-wood-based-biodiesel-001-Wed-01-Feb-2012-10-05.aspx
- UPM general brochure, p. 13
- UPM General brochure, p. 14
- UPM Product news 18 June 2012, http://www.upm.com/EN/MEDIA/All-news/Pages/UPM-ForMi-takes-root-in-the-electronic-industry-001-Mon-18-Jun-2012-09-45.aspx
- UPM general brochure, p. 11
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