Sappi will contribute the following assets to the JV: Gratkorn Mill (Austria); Ehingen Mill (Germany); Maastricht Mill (The Netherlands); and Kirkniemi Mill (Finland). Pictured above: PM 11 at Sappi's Gratkorn Mill.

Sappi and UPM Sign Binding Agreements for Proposed Joint Venture

May 28, 2026 - Sappi Limited and UPM-Kymmene Corporation have today announced the signing of binding (definitive) agreements 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.

A non-binding letter of intent on the transaction was signed on December 4, 2025.

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).

Steve Binnie, CEO of Sappi Limited, said, "Sappi is very excited by the potential that this joint venture, if approved, will bring. We have been searching for a solution to secure a long-term profitable future for our European business. This innovative partnership with UPM will deliver a focused business bringing the best assets and people together to create a strong future which can ensure sustained support for our customers and can also ensure that the European manufacturing base is protected."

Massimo Reynaudo, President and CEO of UPM, commented, "The definitive agreement is an important milestone in creating the planned Joint Venture that we see as a necessary step to secure long-term commitment and supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry."

The transaction remains subject to the fulfillment 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.

SOURCE: Sappi and UPPM