Sappi Limited (“Sappi”) and UPM-Kymmene Corporation (“UPM”) have today announced the signing of binding (definitive) agreements to form a non-listed, independent 50/50 Joint Venture for graphic paper. This Joint Venture proposes to bring together Sappi’s European Graphic Paper business with UPM’s Communication Papers business in Europe, the UK and the US.
Sappi will contribute the following assets: Gratkorn Mill (Austria); Ehingen Mill (Germany), Maastricht Mill (The Netherlands), and Kirkniemi Mill (Finland).
UPM will contribute their Communication Papers business assets which are located at the following UPM mills: Augsburg (Germany), Schongau (Germany), Nordland paper lines 1 and 4 (Germany), Rauma including UPM RaumaCell (Finland), Kymi - excluding pulp mill
(Finland), Jämsänkoski paper line 6 (Finland), Caledonian (United Kingdom), and Blandin (United States of America).
The transaction remains subject to the fulfilment of a number of regulatory and other conditions, including shareholder approval. The parties expect final resolutions by the end of 2026. The Joint Venture would become operational upon closing.
Commenting on the benefits to Sappi
Sappi is very excited by the potential that this joint venture, if approved, will bring. We have been searching for a solution to secure a long-term profitable future for our European business. This innovative partnership with UPM will deliver a focused business bringing the best assets and people together to create a strong future which can ensure sustained support for our customers and can also ensure that the European manufacturing base is protected.
Steve Binnie, Sappi Limited CEO
For further information on the proposed Joint Venture:
ENDS
About Sappi
Sappi uses renewable resources to make woodfibre based products. We are a diversified, innovative and trusted leader focused on sustainable processes and products, and are building a circular economy that benefits the world.
Our packaging papers, graphic papers, pulp and biomaterials are manufactured from woodfibre sourced from sustainably managed forests, in production facilities which, in many cases use internally generated bioenergy. Many of our operations are self-sufficient.
We have manufacturing operations on three continents and sell our products in more than 150 countries. Our global presence allows us to optimise for different markets, while sharing best practices and the latest technological achievements.
Together with our partners, we work to build a thriving world by acting boldly to support the planet, people and prosperity.
Issued by Nadia Rossouw Communications & PR (NRPR)
Edelman Europe
Nikkie Shike
VP Public & Government Affairs
Tel +32 475755106
Nikkie.Shike@edelman.com
For further information
André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Andre.Oberholzer@sappi.com
Tracy Wessels
Group Head Investor Relations and Sustainability
Sappi Limited
Tracy.Wessels@sappi.com
Kirsty Hector
Regional Communication Manager
Sappi Europe
Tel + 32 (0) 2 676 97 00
Mobile + 32 (0) 496 390 889
Kirsty.hector@sappi.com
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