UPM-Biofore-Magazine-1-2015-EN

Spending money to make it grow

B etween 2013 and 2016, UPMwill have invested around €680 million in four significant projects aiming to increase its operating margin (EBIDTA) by €200million. UPMhas made significant investments in biofuels, self- adhesive label papers and pulp in recent years. The production capacity for pulp is set to increase by 10% by the end of 2015. “Demand for pulp is growing constantly in China and across Asia — this is one of our main reasons for investing in pulp production. In order to meet global demand, we have invested in both the Fray Bentos pulp mill in Uruguay and in our Finnishmills in Kymi and Pietarsaari,” says Kari Ståhlberg , Head of Corporate Strategy. On the paper production side, the company is focusing on produc- tivity andmaintaining a competitive edge in Europe. Ongoing efforts have enabled UPM to maintain its profitability and strong cash flow despite the challenging market outlook. “We sold our paper mill inMyllykoski, which was one way of seeking returns to scale in our core business. One example here is magazine paper. We value productivity in all aspects of production, and the benefits of the merger are clearly visible in our results today,” says Ståhlberg. “While developing our current operations, we are also investing in brand-new areas that allow us to build on the strengths we already possess,” he adds.

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