Strategy in action

Our strategy includes actions to drive performance, focused projects to capture high return growth opportunities and mid- to long-term development work to create new high value added growth. The company is developing its business portfolio in order to increase its value and to create growth.​

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1. Continuous improvement in performance

UPM implements performance improving actions in all businesses to advance towards top performance in the businesses' respective markets.

  • Good governance, industry leading environmental performance, responsible sourcing and a safe working environment are important sources of competitive advantage
  • UPM aims to further improve its resource efficiency and drive down variable and fixed costs
  • Successful implementation of commercial strategies in business area
  • Working capital management
  • Efficient use of assets, including restructuring

2. Focused growth investments

UPM invests in focused, high return projects to capture growth opportunities in its business portfolio. The company is investing in the following projects, targeting to exceed EUR 200m in additional EBITDA when all the projects are fully operational.

Fully contributing in 2016

  • Pietarsaari pulp mill expansion
  • Fray Bentos pulp mill expansion
  • Kymi pulp mill expansion
  • Raflatac expansion in APAC, Poland

Ramp-up progressing well

  • Lappeenranta biorefinery
  • Changshu speciality papers

80 % run-rate of the EUR 200m EBITDA target achived in Q3 2016

Under construction, in schedule and budget

  • Otepää plywood mill expansion
  • Kaukas pulp mill efficiency
  • Kymi pulp mill expansion, phase 2
  • Raflatac expansion in Poland

3. Business portfolio development

UPM aims to develop its business portfolio to increase its value, long-term profitability and growth outlook. The target is to increase the share of highly profitable businesses with good fundamentals for growth

  • Developing  each business by driving profitability, growth and cash flow
  • Grow well performing businesses through focused growth investments and synergistic mergers and acquisitions
  • Portfolio changes possible, if it would be the best way to increase long-term shareholder value

4. New business and product development for long-term growth

Through innovation UPM targets competitive advantage and growth in both new and existing businesses. Innovation is an idea that translates into value for UPM and could materialise in form of:

  • New business models
  • Service concepts
  • Product or product enhancements
  • Business
  • Technology and processes
  • New way of operating

In new businesses development UPM is primarily utilizing its extensive know-how and strong position in the forest biomass sourcing and processing value chain. Ecodesign represents business opportunities with large target markets and high added value. UPM’s Biofuels and Biocomposites businesses are concrete achievements in value creating new businesses that fit into the framework of Ecodesign. In Biochemicals, UPM is offering and developing sustainable and competitive wood-based chemicals for a variety of end uses, yet awaiting initial industrial scale investment. 


Advanced renewable diesel suitable for all diesel engines


Renewable materials to replace oil-based materials e.g. in injection moulding


Renewable performance chemicals and drop-in alternatives for oil-based chemicals

Responsible business

Responsibility is a source of competitive advantage and growth

Business areas

Driving for top performance in all business areas

UPM as an investment

Targeting attractive total return
Investor Relations: +358 (0)204 15 0033,