UPM Partners with Versowood to Enhance Wood Sourcing in Finland

Partnership Agreement

UPM and Versowood, Finland's largest private producer and processor of sawn timber, have entered into a long-term partnership. This collaboration aims to enhance UPM's cost-effective wood sourcing in Finland. Under the agreement, UPM will receive high-quality pulpwood and sawmill by-products from Versowood, strengthening its wood supply for pulp mills in a competitive Finnish market.

Asset Exchange

As part of the agreement, UPM will sell its Korkeakoski sawmill in Juupajoki to Versowood. In return, UPM will acquire a minority shareholding in Versowood. The Korkeakoski sawmill has an annual production capacity of 350,000 cubic meters of high-quality pine sawn timber, serving both domestic and export markets.

Regulatory Approval

The finalization of this agreement is contingent upon receiving regulatory approvals, including from the Finnish Competition and Consumer Authority. These approvals are anticipated to be completed by the end of 2025.