​​​​​UPM in transformation

UPM is going through a transformation to ensure sustainable value creation in the long term. The aim is to improve profitability, generate growth and increase the value of the company’s business portfolio.


Over the past years, UPM has evolved from a vertically integrated paper company into a company with six separate business areas, each targeting top performance in their respective markets.

As part of this transformation, UPM has turned former internal resources, such as chemical pulp and energy, into customer-focused and market-driven businesses, has created new business in biofuels and has continued to grow in its businesses with strong long-term fundamentals for profitability and growth.

The structure has brought clarity and sharpened operational focus in each business, facilitating management of the business areas towards differentiated target settings. UPM has been able to allocate investments efficiently with high returns. The company's profitability has improved, shareholder returns have increased and the balance sheet has been strengthened. At the same time social and environmental performance has consistently improved.



From integrated paper production to six separate businesses

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UPM’s business portfolio*)

UPM's businesses are competitive, they have strong market position and they operate mostly on healthily growing markets. UPM is well-positioned to capture attractive growth opportunities also in the coming years.

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Our transformation will continue

UPM's business model of six separate businesses enables optimal capital allocation decisions at the group level, as well as developing the business portfolio further. Thanks to its solid cash flow UPM may simultaneously carry out focused growth investments and attractive distribution to shareholders. The strong balance sheet gives UPM opportunity to accelerate business portfolio transformation through mergers and acquisitions or larger investments, when the opportunity and timing are right. However, UPM aims to maintain a strong balance sheet in all cases. Portfolio changes may be considered, if it would be the best way to increase long-term shareholder value.

Each business area is responsible for executing its own strategy and achieving targets. Group direction and support from global functions enable the businesses to capture benefits from UPM's brand, scale and integration, while navigating the complex operating environment.

With the Biofore strategy, UPM is committed to continue the transformation. A strong focus on performance and competitiveness, combined with an industry leading balance sheet, demonstrate our ability to execute it.

Separate roles of Group and Businesses

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Strategy in action

Shifting gear in the UPM transformation

UPM 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, ir@upm.com