The final agreement to establish a joint venture in graphic papers between UPM and Sappi has been confirmed. The parties have secured a financing arrangement for the joint venture, which will provide a strong financial foundation for the joint venture.
The parties signed a non-binding letter of intent for the joint venture on December 4, 2025.
As previously announced, the joint venture will cover the entire UPM Communication Papers business and Sappi's European graphic papers business. UPM and Sappi would own the joint venture 50/50. The joint venture will operate as an independent company, managing its own operations, resources and decision-making within the boundaries agreed by the shareholders.
“The final agreement is an important milestone in the establishment of the planned joint venture. We see the joint venture as a necessary step to secure the long-term supply security of graphic paper customers in Europe and to strengthen the vitality of the European graphic paper industry as a whole,” says UPM’s CEO Massimo Reynaudo.
