UPM has joined Cefic, the European Chemical Industry Council, strengthening its position within Europe’s largest network of chemical manufacturers as momentum grows toward renewable, circular materials.
The move signals the company’s intent to play a more active role in shaping EU-level discussions on how bio-based feedstocks can contribute to industrial competitiveness and decarbonization.
Cefic represents more than 600 chemical companies and associations across Europe, giving UPM a central platform as the bio-based segment of the industry expands. For UPM, the decision reflects a broader transformation: from a traditional forest industry group to a supplier of renewable chemical building blocks derived from wood.
Harald Dialer, Executive Vice President of UPM Biorefining & Technology, said the membership aligns with the company’s long-term goal of advancing renewable chemistry as a credible alternative to fossil-based production. Cefic’s leadership welcomed the move, noting that bio-based materials are essential to achieving Europe’s climate objectives while maintaining industrial competitiveness.
UPM’s growing presence in the chemical sector is anchored by its new biorefinery in Leuna, Germany, which produces wood-based glycols and lignin-based functional fillers. These materials can be used in packaging, textiles, PET bottles, coolants, composites, pharmaceuticals, and rubber applications — industries that are under pressure to reduce emissions and improve circularity.
The company’s integration into Cefic comes at a moment when Europe’s chemical industry is under significant structural pressure, facing high energy costs, global competition, and the need for large-scale investment in low-carbon technologies. Renewable chemistry is seen as one pathway to reduce fossil dependency while creating new industrial value chains rooted in sustainable feedstocks.
By joining Cefic, UPM will take part in policy development, industry working groups and collaborative research initiatives aimed at expanding the role of bio-based materials in Europe. The company says the partnership will help support industrial resilience and the creation of high-value jobs linked to the bioeconomy.
UPM is a global producer of renewable fibre products, advanced materials and biochemical solutions, with around 15,800 employees and annual sales of €10.3 billion. The company operates worldwide and its shares are listed on Nasdaq Helsinki.
