UPM Strengthens Wood Sourcing in Finland Through Strategic Partnership with Versowood
UPM has taken a major step to reinforce its wood sourcing operations in Finland by entering into a long-term strategic partnership with Versowood, the nation’s largest private producer and processor of sawn timber. The agreement, announced today, is set to create a mutually beneficial relationship between the two industry leaders while supporting stability and efficiency in the Finnish wood market.
Under the terms of the agreement, UPM will gain access to a steady supply of high-quality pulpwood and sawmill by-products from Versowood. These resources are crucial for UPM’s pulp production, particularly at a time when the Finnish wood market is experiencing tightening supply conditions. In exchange, UPM will provide Versowood’s sawmills with logs sourced through its extensive wood procurement operations across Finland. This reciprocal arrangement ensures that both companies strengthen their supply chains while making more effective use of Finland’s forest resources.
Petri Hakanen, Senior Vice President of UPM Fibres Finland Operations, emphasized the importance of the partnership for UPM’s long-term operations.
“Through this long-term partnership with Finland’s largest private producer and processor of sawn timber, we will significantly strengthen the availability of pulpwood and wood chips for UPM’s pulp mills in Finland. At the same time, the processing of valuable Finnish logs into high-quality sawn timber will continue in a company that focuses on the further processing of sawn products,” said Hakanen. He further added that this step represents a natural extension of the long-standing cooperation between UPM and Versowood.
A key element of the agreement involves UPM selling its Korkeakoski sawmill, located in Juupajoki, Finland, to Versowood. In return, UPM will acquire a minority shareholding in Versowood. This ownership stake allows UPM to remain closely involved in the future success of Versowood while streamlining its own operations. The Korkeakoski sawmill is a significant asset in the Finnish timber sector, with an annual production capacity of 350,000 cubic meters of high-quality pine sawn timber. The sawmill supplies both domestic markets and international export customers, making it an integral part of Finland’s wood products industry.
Following the transfer of the Korkeakoski sawmill, UPM will continue to operate three other sawmills located in Lappeenranta, Pori, and Pietarsaari. These facilities ensure that UPM remains among the largest producers of sawn timber in Finland, while also focusing more closely on its core pulp and bio-based businesses. The divestment reflects UPM’s strategy of refining its portfolio to ensure long-term growth, sustainability, and resilience in a competitive market.
For Versowood, the acquisition of the Korkeakoski sawmill represents a valuable expansion of its production capabilities. As Finland’s leading private timber producer, Versowood is known for its expertise in processing high-quality Finnish logs into sawn timber and other value-added wood products. The additional production capacity will strengthen its position in both domestic and international markets while further integrating the company’s supply chain with UPM’s sourcing operations.
The partnership also highlights the strategic importance of cooperation in the Finnish forestry and wood-processing industries. Finland’s forests are a vital natural resource, and ensuring their sustainable use requires long-term planning and collaboration among key players. By joining forces, UPM and Versowood aim to improve resource efficiency, stabilize wood supply, and contribute to the overall competitiveness of the Finnish bioeconomy.
Beyond the direct business benefits, the agreement underscores the value of partnerships in navigating today’s market challenges. With increasing competition for raw materials and the need for sustainable practices, cooperation between companies like UPM and Versowood offers a pathway to strengthen resilience in the wood sector. The arrangement ensures that both pulp and sawn timber production continue to thrive, creating value for customers, employees, and the broader Finnish economy.
The agreement is still subject to regulatory approvals, including clearance from the Finnish Competition and Consumer Authority. These approvals are expected to be completed by the end of 2025, after which the full terms of the partnership will come into effect. Once finalized, the collaboration will mark a significant milestone in the Finnish forestry sector, reinforcing both companies’ roles as leading contributors to the country’s sustainable wood economy.
In summary, the UPM–Versowood partnership represents far more than a business transaction. It is a strategic move that aligns the strengths of two of Finland’s most prominent players in the wood industry. For UPM, it secures the flow of critical raw materials for pulp production. For Versowood, it expands production capacity and strengthens market presence. And for Finland’s forestry sector, it demonstrates the benefits of long-term cooperation in ensuring competitiveness, sustainability, and growth in a vital national industry.
