Sappi and UPM propose combining their European-based graphic paper businesses to create a new Joint Venture company
Sappi Limited (“Sappi”) and UPM-Kymmene Corporation (“UPM”) have today announced the signing of a non-binding letter of intent to form a non-listed, independent 50/50 Joint Venture for graphic paper. This Joint Venture will bring together Sappi’s European Graphic Paper business with UPM’s Communication Papers business in Europe, the UK and the US. The transaction will be subject to the fulfilment of a number of regulatory and other conditions, including shareholder approval. The parties intend signing definitive agreements during the first half of calendar year 2026 and expect to close the proposed transaction by the end of calendar year 2026, once all conditions precedent are fulfilled.
Commenting on their decision to create the Joint Venture, Sappi Limited CEO Steve Binnie and UPM President and CEO Massimo Reynaudo said: “The proposed joint venture represents a decisive response to the structural changes in the European graphic paper industry, offering a path to strengthen its resilience and provide long-term commitment and supply security to customers.”
Commenting on the benefits to Sappi, Steve Binnie said: “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
Communiqué de SAPPI et UPM du 4/12/25
Jean-Philippe Behr
