Helsinki (News release) -- UPM and Versowood, Finland's largest private producer and processor of sawn timber, have today agreed on a long-term partnership that will enable UPM to strengthen its cost-effective wood sourcing in Finland. Under the agreement signed by the two companies, UPM will receive high-quality pulpwood and sawmill by-products from Versowood, allowing UPM to thus strengthen the supply of wood for its pulp mills in the tight Finnish wood market. UPM will in turn supply Versowood's sawmills with logs acquired through UPM's own wood sourcing 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," says Petri Hakanen, Senior Vice President, UPM Fibres Finland Operations.

"The agreement we have now signed is a natural continuation of our long-term cooperation with Versowood," Hakanen continues.

As part of the agreement, UPM will sell its Korkeakoski sawmill in Juupajoki, Finland, to Versowood and receive a minority shareholding in the company in return. The Korkeakoski sawmill has produced annually 350,000 cubic meters of high-quality pine sawn timber for the domestic market and for export. After the agreement enters into force, UPM will have three sawmills in Lappeenranta, Pori, and Pietarsaari, and the company will still be one of Finland's biggest producers of sawn timber.

The final entry into force of the agreement is subject to regulatory approvals, including approval by the Finnish Competition and Consumer Authority, which are expected to take place by the end of 2025.