Why a new Sappi/UPM joint venture signals a brighter future for our customers

The signing of a non-binding letter of intent to create a new 50/50 joint venture is set to start an exciting new chapter  

Sappi has long stood for creating value for the print and publishing industry – by ensuring reliable quality, helping keep print competitive and partnering closely with customers to strengthen the entire value chain.

This commitment is exactly why the announcement of a non-binding letter of intent between Sappi and UPM to form a 50/50 joint venture focused on graphic papers marks an exciting step forward for our industry – as well as for our customers.   

Increased value for customers

Printers, publishers and brands today need more than just paper. They need security of supply, cost-competitive solutions, ongoing innovation and the confidence that their communication medium is sustainably future-proofed. The potential joint venture is designed to deliver precisely these advantages.  

A stronger, more resilient European graphic paper partner

The new entity would help construct a more robust European graphic paper business with the size and scale to better support long-term local industry and intimate connections to our customers – while competing more effectively with non-European producers.

Better availability, more efficient supply and dependable service

By combining resources, the joint venture would help ensure better and more efficient availability, using a larger manufacturing and supply chain footprint to deliver timely and consistent service. This is essential to support print as a viable choice for end users, especially in an increasingly competitive communication environment.

Industry-leading sustainability to strengthen the image of print

Both companies share strong environmental commitments, and sustainability continues to be one of print’s strongest value drivers. The intention is to ensure that the joint venture accelerates progress toward best-in-class sustainability standards, allowing the publishing and printing community to confidently promote and market print for all communication and advertising needs.  

The ability to adapt and innovate in products and services – to the benefit of cost competitiveness

The proposed joint venture would enable deeper investment in innovation, focused on cost competitiveness, product development and service improvement – allowing print to better compete with digital alternatives and supporting new value creation opportunities across the value chain.  

A new chapter that reinforces what Sappi has always stood for

We believe in partnering with you to keep print strong, competitive and relevant. The proposed new joint venture strengthens our Sappi Value Development Process by deepening our local, customer-focused collaboration with printers, merchants and distributors. That we way ensure that we understand your requirements and remain closely aligned with the needs of the print media value chain to drive efficiency, revenue opportunities and long-term relevance

As Sappi Europe Flavio Froehli, VP Sales & Marketing says,” For our customers, this proposed joint venture is a natural evolution of Sappi’s commitment to creating lasting value for the print and publishing industry. In a world where digital media dominates, print must continue to prove its relevance and strength. By combining our capabilities, we reinforce the reliability, efficiency, and innovation that keep print competitive—delivering greater long-term value and helping ensure this vital industry remains vibrant, future-ready, and a powerful complement to digital.” 

No immediate changes

Sappi and UPM intend signing definitive agreements during the first half of 2026 and expect to close the proposed transaction by the end of 2026.  

The transaction itself – which will be subject to the fulfilment of a number of regulatory and other conditions, including shareholder approval – will be structured with Sappi and UPM as founding shareholders and each holding 50% of the issued shares.  

For the moment, of course, it remains business as usual for our Sappi operations across Europe, with no changes to current agreements and arrangements while the two companies move through the full process of regulatory approval.

So, please feel free to contact your local Sappi sales representative with any questions.