The biorefinery uses beechwood from thinnings and sawmill residues, sourced within about 200 kilometers and unsuitable for higher-value uses such as timber or furniture.
Oct. 15, 2026 - UPM today inaugurated its biorefinery in Leuna, Germany, marking the start of a new industrial platform for renewable chemicals made from wood. The biorefinery converts lignocellulosic biomass, primarily wood from sustainably managed forests and sawmill residues, into biochemicals. With an annual capacity of 220,000 tonnes, it is the largest facility of its kind in the world.
The facility, which started production in December 2025, represents a total investment of EUR 1,370 million.
According to UPM, enzymatic hydrolysis and the production of lignin-derived specialty chemicals have reached stable operation and UPM is ramping up sales of these products.
UPM held an inauguration ceremony on October 15 for its biorefinery in Leuna, Germany.
"The Leuna Biorefinery is a transformative investment for UPM and an important milestone in our growth journey," said Massimo Reynaudo, President and CEO of UPM." Our high-performance renewable chemicals open new markets for UPM and new opportunities for our customers. Together with our renewable fuels, the Leuna Biorefinery forms a platform for profitable growth and shows the ambition and energy with which UPM innovates."
UPM pointed out that biochemicals from the new plant will be used in everyday products, from clothing and packaging to cosmetics, construction materials and tires.
"Many of these are still made from fossil-based raw materials. Manufacturers and brands look for new ways to innovate and differentiate, and the Leuna plant gives them renewable alternatives with the required performance," the company stated in a press release.
The biorefinery uses beechwood from thinnings and sawmill residues, sourced within about 200 kilometers and unsuitable for higher-value uses such as timber or furniture. Using enzymatic hydrolysis, it breaks the biomass down into industrial sugars and lignin, renewable raw materials that can replace fossil-based inputs in chemicals production.
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. UPM operates globally and employs approximately 15,100 people worldwide, with annual sales of approximately EUR 9.7 billion.
SOURCE: UPM