Sappi Limited has confirmed the signing of binding agreement with UPM-Kymmene Corporation (UPM) to form a non-listed, independent 50/50 Joint Venture for graphic paper. This Joint Venture proposes to bring together Sappi’s European Graphic Paper business with UPM’s Communication Papers business in Europe, the UK and the US.
Sappi will contribute the following assets: Gratkorn Mill (Austria); Ehingen Mill (Germany), Maastricht Mill (The Netherlands), and Kirkniemi Mill (Finland).
UPM will contribute their Communication Papers business assets which are located at the following UPM mills: Augsburg (Germany), Schongau (Germany), Nordland paper lines 1 and 4 (Germany), Rauma including UPM RaumaCell (Finland), Kymi – excluding pulp mill (Finland), Jämsänkoski paper line 6 (Finland), Caledonian (United Kingdom), and Blandin (United States of America).
The transaction remains subject to the fulfilment of a number of regulatory and other conditions, including shareholder approval. The parties expect final resolutions by the end of 2026. The Joint Venture would become operational upon closing.
