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UPM has signed a definitive agreement to form a graphic paper Joint Venture with Sappi, and the parties have secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent (LOI) on the transaction was signed on December 4, 2025. The planned Joint Venture will include the entire UPM Communication Papers business and Sappi’s graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries. “The definitive agreement is an important milestone in creating the planned Joint Venture that we see as a necessary step to secure long-term commitment and supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry,” said Massimo Reynaudo, President and CEO of UPM. Following this milestone, the parties will start planning to ensure operational readiness of the Joint Venture from day one. Until the closing of the intended Joint Venture according to the satisfaction of all legal and regulatory requirements, UPM Communication Papers and Sappi’s European graphic paper business will continue to operate as separate and independent companies. The Joint Venture is expected to create annual synergies estimated at about €100 million through asset and logistics optimizations, product portfolio rationalization, sourcing efficiency improvements and operational efficiencies. The establishment of the Joint Venture is intended to create a sustainable standalone business that ultimately will provide divestment flexibility for all shareholders. Three years after closing, with the Joint Venture expected to have completed the integration and realized the synergies, either shareholder may initiate a divestment of their shareholdings.

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In the UNESCO Spreewald Biosphere Reserve in Germany, a log corduroy road is currently being constructed using round timber to enable low-impact access to a wetland area. A Komatsu 951XC harvester equipped with an S172 head is being used for the project. Source: Timberbiz The timber road will provide the foundation for future forestry operations. The Spreewald region in Brandenburg, Germany, is one of Europe’s most distinctive natural landscapes. The region is characterized by a widely branched network of natural and man-made waterways as well as permanently wet, partly marshy soils. As a UNESCO Biosphere Reserve, the Spreewald places special demands on forestry operations, as the sensitive site conditions and the low load-bearing capacity of the soils make the use of conventional machinery considerably more difficult. Against this backdrop, a special forestry operation is currently being carried out: in a wetland area, a Komatsu 951XC harvester combined with an S172 head is building a road made of roundwood, known as a corduroy road. The planned road will be approximately 800 metres long and will serve as a stable foundation for further access to the area. The main challenge lies in the ground conditions. The subsoil is soft and unstable, which means machines cannot be used without preparatory measures. Building the corduroy road makes it possible to create the necessary infrastructure for the subsequent work steps. The aim is to enable adapted management of the area in the future. Timber harvesting will be carried out manually with chainsaws. A cable yarding system is planned for transporting the timber. At the end of the cable line, the felled trees will be processed by a harvester. A forwarder will then handle the onward transport of the logs from the stand. The construction of the corduroy road is therefore the first and decisive step in enabling a structured and soil-friendly operation in this challenging environment. This application demonstrates how practical solutions can be developed through the targeted use of modern forestry technology, even under extreme site conditions. This junction has been designed so that work can be carried out in parallel: On one side, the harvester processes the stems, while on the other side the cable yarder is positioned. The cable yarder handles timber extraction from the protected area of the biosphere reserve, where the use of machinery is not possible.

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