​​​​UPM Biorefining

UPM Biorefining consists of pulp, timber and biofuels businesses. UPM has three pulp mills in Finland and one mill and plantation operations in Uruguay. UPM operates four sawmills in Finland. UPM‘s biorefinery producing wood-based renewable diesel started up in early 2015. Its main customers are tissue, speciality paper and board producers in the pulp industry, fuel distributors in the biofuel industry and construction and joinery industries in the timber sector.​

​Our direction

  • In Pulp, maintain cost competitiveness through continuous operational improvement, provide the most versatile pulp product range aligned with top-notch environmental standards and most advanced technical service. Grow as a cost efficient producer through debottlenecking investments and potentially through acquisitions.
  • In Biofuels, commercialise the investment in the world's first biorefinery producing wood-based renewable diesel.
  • In Timber, enhance profitability through efficient use of wood supply, integrated full-production and sharpened commercial strategy.

Our strengths

  • Versatile range of pulp grades suitable for a wide range of end uses
  • Own sales and service network for the global customer base
  • Modern, efficient pulp mills and business committed to growth
  • World-class logistics platform connecting continents
  • Sustainable wood sourcing and excellent environmental performance
  • Proprietary technology for wood-based renewable diesel
  • Competitive sawmills with skilled global sales
  • Synergistic operations from joint supply chain of wood raw materials for sawn timber, pulp and renewable diesel

UPM Biorefining value created

Important Image

Markets and drivers

  • Chemical pulp demand is growing globally by approximately 2-3% annually, driven by growth in private consumption. In 2015, global market shipments increased by 3% compared to the previous year.
  • Pulp consumption is driven by an increasing use of tissue papers, hygiene products as well as board and specialty papers, for example for packaging and labelling. In developing markets, growth is also underpinned by middle class expansion and fast urbanisation.
  • Demand for hardwood pulp grows faster than for softwood pulp due its end-use qualities and lower production costs.
  • The global hardwood pulp production capacity is growing, primarily through new production line installations entering the market. The softwood pulp production capacity is growing mainly through expansion investments.
  • Chemical pulp demand is also supported structurally as the graphic paper segment supplies fewer white recycled fibres for the growing tissue and speciality segments.
  • Older pulp capacity has been closed down for financial and environmental reasons.
  • Demand for advanced biofuels is growing due to stricter environmental standards and sustainability requirements. Regulation developed in favour of advanced biofuels.
  • Sawn timber demand is driven by the activity of joinery, packaging, distribution and construction industries. In 2015 demand remained stable in Europe, Asia and the Middle East and North Africa.

Key figures

​Sales, EURm​2,2721,937
​Operating profit excl special items, EURm​467​217
% of sales 20.611.2​
​Capital employed (average), EURm​3,191​2,862
​ROCE excl.special items, %​14.67.6​
​Personnel on 31 December​2,593​2,529


Business areas

Driving for top performance in all business areas

UPM as an investment

Targeting attractive total return

Financial targets

Profitability improved in 2015