UPM Biofore Magazine 1-2018

for Uruguay, where the company is assessing the possibility of building a second pulpmill. The newmill would cost approximately two billion euros. “The preliminary planning and infrastructure projects are proceeding as expected, but the final decision on investment will not be made until mid-2019 at the earliest. It could even be later,” notes Pesonen. He adds that starting a large production facility is a long-term project. Planning for the newmill in Uruguay began as early as 2010, when UPM started increasing its plantation area. “There is plenty of sustainably grown wood rawmaterial available, so in that sense the cornerstone has already been laid for the new plant.” To meet rising demand, UPM is also increasing the capacity of its label material production plants. Meanwhile, removal of production bottlenecks has been the main focus of attention at the UPMChangshumill in China, while in Germany, UPM

technology that allows us to utilise different rawmaterials requires a lot of innovation.” In the biochemicals business, UPM is examining the possibility of constructing an industrial-scale biorefinery at the Frankfurt-Höchst Chemical Park in Germany. “In the preliminary technical planning phase, we are also gauging commercial interest in alternative materials to replace fossils in various end-use applications andmarkets.” Journey of transformation Pesonen has been President and CEO of UPM since January 2004. He has led the company through a challenging transformation. Today, this former traditional paper company is a recognised frontrunner in bioeconomy innovation. “All stages of the transformation have been extremely interesting.

CEO’s top two challenges UPM’s future is brimming with great opportunities, but there are also complex challenges on the horizon. Two of them are of special concern to the President and CEO, who is responsible for the organisation as a whole. The first is linked to the continuous improvement of employee competences, whether by adopting innovative production methods or understanding the ever- changing market. Pesonen believes that the CEO’s main duty is to give the personnel the tools to become the very best they can be. “As CEO, you have to know your employees and allow people to do their job efficiently. It may sound like a cliché, but the success of the company starts with its people. It’s important to ensure employee wellbeing, so that they can get inspired about their work and achieve results.” The second crucial challenge relates to focused capital allocation, an area in which UPMhas excelled in recent years. Focused growth projects have exceeded their ROI targets. “We must continue to focus our investments on exactly the right projects to ensure that they generate growth andmeet our ROI targets.” Pesonen notes that UPM’s financial standing is currently better than ever. Thanks to the company’s solid performance and balance sheet, more capital can be allocated to promote its future growth and transformation. “In the meantime, we will also strive to increase shareholder returns and create additional value for all our stakeholders.” 

A MAJOR STEP is planned for Uruguay, where the company is assessing the possibility of building a second pulp mill. The preliminary planning and infrastructure projects are proceeding as expected. The new mill would cost approximately two billion euros. JUSSI PESONEN has been President and CEO of UPM since January 2004. He has led the company through a challenging transformation. Today, this former traditional paper company is a recognised frontrunner in bioeconomy innovation.

Getting the company into shape was challenging, at times even nerve-racking.

But when our people realised that changes were necessary – and achievable – things started moving in the right direction.” Pesonen

“It may sound like a cliché, but the success of the company starts with its people. It’s important to ensure employee wellbeing, so that they can get inspired about their work and achieve results.”

Nordland’s second paper machine is being converted fromfine paper to label paper manufacturing. Significant

commends his employees for their ability to achieve results even in challenging market

investments are also in the pipeline for the biomolecule business. UPM is

currently looking into setting up a new biorefinery in Kotka to manufacture advanced traffic fuels from several biomaterials. “The production capacity of the planned facility would be fivefold compared to the UPMLappeenranta biorefinery. New production

situations. In the declining paper market, for instance, the company has successfully adapted to changes and developed new products. “Our business has been profitable even in the most challenging conditions. This is a truly commendable achievement.”

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