UPM has signed a long-term strategic agreement with Versowood, Finland’s largest private producer and processor of sawn timber, to strengthen its pulpwood supply and ensure reliable access to raw materials in Finland’s competitive wood market.
Under the new partnership, Versowood will deliver pulpwood and sawmill by-products to UPM’s pulp mills, while UPM will supply logs from its own sourcing network to Versowood’s sawmills. The collaboration enhances both companies’ efficiency and supports a balanced use of Finnish wood resources.
“Through this long-term partnership with Finland’s largest private producer and processor of sawn timber, we will significantly strengthen the availability of pulpwood and wood chips for UPM’s pulp mills in Finland,” said Petri Hakanen, Senior Vice President, UPM Fibres Finland Operations.
As part of the agreement, UPM will sell its Korkeakoski sawmill in Juupajoki, which produces around 350,000 cubic metres of high-quality pine sawn timber annually, to Versowood. In return, UPM will acquire a minority shareholding in Versowood. After the transaction, UPM will continue to operate three sawmills in Lappeenranta, Pori, and Pietarsaari, remaining one of Finland’s leading timber producers.
The agreement, building on a long-standing relationship between the two companies, is subject to approval by the Finnish Competition and Consumer Authority, expected by the end of 2025.
Strengthening Finland’s Wood Value Chain
The partnership aligns with UPM’s strategy to ensure cost-effective and sustainable wood sourcing while maintaining domestic processing of high-quality Finnish logs. The collaboration supports long-term value creation within Finland’s forestry and pulp industries.
UPM’s Fibres business area includes pulp and timber operations as well as wood sourcing and forestry services. The company operates three pulp mills in Finland and two in Uruguay, along with extensive forest management and biomass supply networks across Northern Europe.
Headquartered in Helsinki, UPM is a global material solutions company offering renewable fibres, advanced materials, and decarbonization solutions. With 15,800 employees and annual sales of €10.3 billion, UPM is listed on Nasdaq Helsinki.
