UPM held its Capital Markets Day in London, UK, under the theme “From transformation to growth”. Massimo Reynaudo, UPM’s president and CEO, alongside other members of the Group Executive Team, outlined the next phase of the company’s strategy, which focuses on accelerating growth across its portfolio of renewable fibers, advanced materials, and decarbonization solutions.
Over the past 15 years, UPM has shifted from being a paper producer in a declining European market to a global supplier of advanced materials in growing sectors. The company has emphasized sustainability, receiving top accolades for its performance, while also achieving an average annual total shareholder return of 14%, driven by strong operational results and strategic capital allocation.
UPM is now poised to accelerate growth over the next five years. The company’s business portfolio is well-positioned for expansion in renewable fibers, particularly pulp, as well as in advanced materials like adhesive materials, specialty papers, and plywood. UPM also aims to grow in decarbonization solutions, such as biochemicals, biofuels, and CO2-free energy. Meanwhile, its graphic paper business will continue focusing on generating strong cash flow.
In the renewable fibers sector, UPM plans to optimize production and maximize the potential of its operations in Uruguay. In advanced materials, the company is targeting growth in both existing and adjacent markets with strong demand. Decarbonization solutions are another key area, with UPM preparing to launch its biochemicals business later this year, scale up biofuels, and capture value from the evolving energy market.
“With a strong, balanced portfolio, we are well-positioned for the future. Our recent USD 3.47 billion investment in the pulp business platform in Uruguay is expected to provide healthy earnings contribution. In the coming years, we seek further earnings growth in advanced materials and decarbonization solutions and strive to capture opportunities in higher-growth geographies,” said Massimo Reynaudo.
Reynaudo also emphasized the company’s commitment to disciplined capital allocation, stating: “While seeking significant growth, we will maintain our disciplined capital allocation principles. We select opportunities with attractive returns, supported by robust demand growth outlook and structural competitive advantages. At the same time, we remain committed to predictable and attractive dividends, which can potentially be complemented with share buybacks”.
He further highlighted UPM’s dedication to sustainability: “We are committed to creating value for our customers, using sustainable, renewable feedstocks, reducing our own environmental footprint, and enhancing our positive social impact. Our leading position in sustainability is based on world-leading standards, commitment to respected global initiatives and third-party verification. We believe in science-based actions and raising the bar higher on sustainability”.
