UPM Specialty Papers

UPM Specialty Papers serves growing markets with labelling materials globally, fine papers in Asia and flexible packaging in Europe. The operations consist of the UPM Changshu and UPM Tervasaari mills in China and Finland as well as labelling and packaging materials production lines at the UPM Jämsänkoski mill in Finland. A new speciality paper machine at the UPM Changshu mill started production in December 2015. The main customers are retailers, printers, publishers, distributors and paper converters.

​Our direction

  • In Label, Pack & Release, profitable growth globally through competitive production, innovations and strengthened partnerships with customers by offering an exceptional customer experience and leading sustainability performance
  • In Fine Paper Asia-Pacific, profitable growth in high quality office papers, new innovations through strengthened partnerships with customers achieved by offering exceptional customer experience and leading sustainability performance

Our strengths

  • Global market leadership in labelling materials, focusing on high quality release liners, face papers and flexible packaging papers
  • Reliable supplier with high quality fine papers in Asia Pacific with extensive distribution network
  • Exceptional customer service globally and strong office paper brands in China
  • Recognised industry leader in sustainability and environmental excellence
  • Cost efficient operations with unique position on the Asian market

UPM Specialty Papers value created 

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Markets and drivers

  • The labelling materials and release liner market is growing globally, particularly in Asia Pacific. In 2015, the global market grew by 3–5%. In Asia Pacific, the growth rate was even twice as high.
  • In developing markets, growth is driven by private consumption, middle class expansion and branded goods. Growth is also supported by the rapid development of retailers and automated product labelling. Moreover, release liner demand is driven by increasing use of pressure sensitive adhesive materials in consumer products, industrial applications and the manufacturing industry.
  • In Asia Pacific, fine paper demand somewhat decreased, while office paper demand grew by 2–3% in 2015 compared to 2014.
  • Regional office paper demand is driven by economic activity, urbanisation and new company establishments.
  • In Asia overcapacity prevails in all paper grades and US anti-dumping and countervailing duties on some Asian producers are adding regional fine paper supply. New investments and paper machine conversions to uncoated wood-free and labelling materials in Asia Pacific, as well as conversions to labelling materials in Europe have intensified the competition.

Key figures

​2015​2014
​Sales, EURm​1,168​1,124
​Operating profit excl. special items, EURm​55​108
​% of sales​4.79.6
​Capital employed (average), EURm​1,012​861
​ROCE, excl.speciakl items, %​5.412.5
​Personnel on 31 December​1,738​1,652

 

Business areas

Driving for top performance in all business areas

UPM as an investment

Targeting attractive total return

Financial targets

Profitability improved in 2015