Sappi Limited and UPM-Kymmene Corporation have announced the signing of binding agreements to create an independent, unlisted joint venture, owned 50/50 by both companies, in the graphic paper sector.
The transaction involves integrating Sappi’s European Graphic Paper business with UPM’s Communication Papers business in Europe, the United Kingdom, and the United States.
Sappi will contribute to the new company its facilities in Gratkorn (Austria), Ehingen (Germany), Maastricht (Netherlands), and Kirkniemi (Finland). UPM will contribute assets from its Communication Papers business located at plants in Augsburg, Schongau, and Nordland (lines 1 and 4) in Germany; Rauma (including UPM RaumaCell), Kymi (excluding the pulp mill), and Jämsänkoski line 6 in Finland; as well as the Caledonian plant in the United Kingdom and Blandin in the United States.
The transaction remains subject to the fulfillment of various regulatory conditions and shareholder approval. The parties expect final decisions by the end of 2026. The joint venture would become operational upon completion of the deal.
Steve Binnie, CEO of Sappi Limited, commented:
“Sappi is excited about the potential this joint venture, if approved, can offer. We were seeking a solution to ensure a profitable and sustainable long-term future for our European business. This innovative partnership with UPM will create a focused company, bringing together the best assets and people to build a strong future, ensuring continued support for customers and protecting the European manufacturing base.”