UPM enters the business of biochemicals


UPM will enter the biochemicals business by investing 550 million euro in a new biorefinery in Germany.

The biorefinery will produce a range of 100 percent wood-based biochemicals that enable a switch from fossil raw materials to sustainable alternatives in various consumer-driven end-uses. The investment opens up completely new markets for UPM, with a great potential of growth for the future.

The new biorefinery will have a production capacity of 220 thousand tonnes of bio-monoethylene glycol (BioMEG) and lignin-based renewable functional fillers. In addition, the biorefinery will produce bio-monopropylene glycol (BioMPG) and industrial sugars. The facility is scheduled to start up by the end of 2022.

The engineering and planning are on-going and the tendering for the main equipment, recruitment for the project and permitting process will start immediately. Permitting will proceed parallel to the investment project in line with German legislation, according to UPM.

Leuna, which is located at about 150 kilometres south of Berlin, was the hub of the chemical industry of the former Eastern Germany. Today’s infrastructures of Leuna’s chemical pole are owned by Infra Leuna.