UPM and Sappi Submit Remedies for Graphic Paper Joint Venture

UPM and Sappi have submitted formal remedy proposals to the European Commission during its review of their planned graphic paper joint venture. The Commission will assess the commitments as part of the continuing investigation.

Capacity, customers and energy investment

The proposals address the venture’s future operations through capacity optimization for certain paper grades supplied in Europe, related disclosures, commercial safeguards for customers, and investments in decarbonization, electrification and energy efficiency. Environmental performance would be considered in capacity measures aimed at maintaining competitive, stable supply as demand contracts. Implementation would follow the venture’s establishment.

Market conditions and review timetable

UPM maintains that the transaction raises no competition concerns. It views consolidation as a response to structural market decline, enabling orderly capacity adjustment, supply reliability and efficiencies while strengthening the industry’s competitiveness, sustainability and resilience. European graphic paper industry sales fell 7% year on year in Q3 2026.

Both companies continue discussions with the Commission but have declined further detail during the review. A decision is expected by year-end or shortly afterwards.

UPM employs approximately 13,600 people, generates annual sales of about EUR 9.7 billion and is listed on Nasdaq Helsinki. Its portfolio includes renewable fibres, advanced materials, decarbonization solutions and communication papers.

Source: PapNews