UPM Pulp Matters 2024

EDITORIAL

Growing together with our customers Backed with our strong eucalyptus business, UPM is ready to answer the growing global need for renewable fibres.

“CLOSE COOPERATION WITH ALL OUR STAKEHOLDERS AND PARTNERS IS KEY TO ACHIEVING GREAT THINGS.”

Dear Reader, In this issue of Pulp Matters magazine, we celebrate a major milestone, as the UPM Paso de los Toros pulp mill has successfully ramped up to nominal production capacity. Our world-class platform in Uruguay – with its highly productive plantations, best available technologies, and efficient logistics – consolidates UPM’s global presence as a competitive and sustainable fibre supplier. Besides highlighting our operations in Uruguay, we introduce the team serving our customers in North America, the world’s third largest pulp market. Boosted by our increased supply of eucalyptus pulp, we are determined to become a long-term partner for current and future clients in our new strategic market. Despite the generally positive pulp demand outlook on a global level, the challenges vary in different geographies. The Nordic, and European, forest-based industry is facing tight wood supply and elevated costs. After Russian wood imports were banned, the availability of softwood fibre has become more challenging, and the shortage of raw material is now beginning to make a serious mark on the entire industry. In line with these market and cost developments, we were unfortunately forced to temporarily curtail the production

at our UPM Kaukas and UPM Kymi pulp mills in Finland this autumn for approximately three weeks. However, even in this challenging market situation, we believe we are well equipped to find solutions in cooperation with our customers. With our uniquely comprehensive range of both hardwood and softwood pulp products, and strengthened Technical Marketing and Services team, we can help you find the optimal fibre mix for each specific requirement. Close cooperation is key to achieving great things – not only with customers but also all other stakeholders and partners. Our Paso de los Toros growth project would not have been possible without teaming up with various suppliers and contractors throughout the value chain, and active dialogue and cooperation with the surrounding society, local communities and authorities. As an example, we present the story of a landowner couple who have collaborated with UPM for almost 15 years and made a long-term investment by diversifying their agricultural business into forestry. Similarly, we are here for our customers in the long run, now supplying UPM Euca pulp of consistent quality from two world-class pulp mills in Uruguay well into the future.

Tomas Wiklund Senior Vice President, Pulp Sales UPM Fibres

4

5

PULP MATTERS 2024