UPM and Sappi submit remedies in EC review of graphic paper joint venture

Remedies submitted

UPM and Sappi have formally submitted remedy proposals to the European Commission as part of its ongoing review of the planned graphic paper Joint Venture. The remedies are offered to support the review process and do not change UPM’s view that the transaction does not raise competition concerns.

Scope of the remedies

Commitments cover capacity optimisation for the supply of certain paper grades in Europe and related disclosures intended to maintain a competitive and stable market despite declining demand while taking environmental performance into account. The proposals also include commercial safeguards for customers and investments in decarbonisation, electrification and energy efficiency. Any specific measures to implement these commitments would be taken forward by the Joint Venture following its establishment.

UPM's rationale

UPM says the planned Joint Venture would support the long‑term competitiveness, sustainability and resilience of the European graphic paper industry. It describes the deal as a rational response to the structural decline in graphic paper markets that would enable a more orderly adjustment of industry capacity while maintaining reliable customer supply and generating efficiencies. The companies noted industry sales declined by 7% year on year in the third quarter of 2026.

Regulatory timeline

The European Commission will now assess the proposed remedies as part of its ongoing review. UPM and Sappi continue to engage constructively with the Commission but say they cannot comment further while the process is ongoing. The Commission's final decision is expected by year‑end or shortly thereafter.