Friday, January 2, 2026
The strategic partnership between UPM and Versowood, initially announced in September 2025, has now been officially finalised following the necessary regulatory approvals. The partnership contract entered into force on December 31, 2025, marking a significant milestone for both companies in the Finnish and European wood industries. This collaboration aims to enhance wood supply and strengthen the sawmill operations of both companies, leveraging synergies in the highly competitive Finnish wood market.
Under the terms of the agreement, UPM will receive high-quality pulpwood and sawmill by-products from Versowood, which will contribute to strengthening UPM’s wood supply for its pulp mills. This is particularly important as the Finnish wood market remains tight. In return, UPM will supply logs sourced through its own procurement to Versowood’s sawmills, further cementing the strategic nature of this partnership.
As part of the deal, UPM’s Korkeakoski sawmill has been transferred to Versowood’s ownership. This sawmill, located in Finland, produces nearly 350,000 cubic metres of pine sawn timber annually. Additionally, UPM has received a minority shareholding in Versowood, establishing a mutually beneficial relationship between the two companies. This move significantly strengthens Versowood’s position in the sawmill sector in Finland and beyond.
UPM is a global leader in renewable materials, pulp, and timber industries. The company operates three pulp mills in Finland and two pulp mills with plantation operations in Uruguay. UPM Timber, a division within UPM, runs three sawmills in Finland. The company’s forestry operations, under UPM Forest, manage both UPM-owned and privately owned forests in Northern Europe, securing competitive wood and biomass for its businesses. UPM is committed to sustainability, as evidenced by its recognition in global indices like EcoVadis and the Dow Jones Sustainability Indices.
Versowood Oy, the largest private producer of sawn timber in Finland, has become an even more dominant force in the industry with the recent acquisition of UPM’s Korkeakoski sawmill. With this acquisition, Versowood is now the largest sawmill operator in Finland and ranks among the top ten sawmill operators in Europe. The combined turnover of Versowood and the Korkeakoski sawmill exceeds EUR 700 million, positioning the company for continued growth in the European market.
Versowood produces nearly 2 million cubic metres of sawn timber annually and employs approximately 1,000 people. Its diverse product range includes planed, impregnated, graded, finger-jointed, and painted timber products, as well as glulam, timber bridges, noise barriers, utility poles, wood pellets, and wooden packaging products. This broad product portfolio reflects Versowood’s commitment to delivering high-quality, sustainable solutions for the construction and packaging sectors.
The Korkeakoski sawmill, a central asset in the new partnership, has a rich history. The sawmill was originally sold by the Kopra family to Yhtyneet Paperitehtaat (now UPM) in 1988. It produces approximately 350,000 cubic metres of pine sawn timber annually, contributing to a turnover of about EUR 100 million. Following the acquisition, the sawmill, along with its 70 employees, will be integrated into Versowood’s operations. These employees will be transferred to Versowood’s service as part of the acquisition agreement.
In the summer of 2025, UPM invested in modernising the Korkeakoski sawmill line, ensuring that the plant remains in excellent condition. The expected production target for the coming years is between 350,000 and 400,000 cubic metres annually. This modernisation and subsequent transfer of ownership are expected to further enhance the sawmill’s productivity and efficiency.
The strategic partnership between UPM and Versowood comes at a time when the demand for timber and wood-based products remains high. The Finnish wood market has seen fluctuating demand in recent years, but this partnership is designed to optimise both companies’ operations, ensuring that they are better positioned to meet the challenges of the competitive European wood sector.
The synergy between UPM and Versowood offers a unique opportunity to optimise wood sourcing and sawmill operations. Through this partnership, UPM will be able to secure a steady supply of high-quality wood for its pulp mills, while Versowood benefits from a more reliable supply of logs for its sawmills. Both companies are committed to sustainable practices, and their collaboration reflects a shared goal of improving efficiency and reducing environmental impact.
This partnership strengthens the position of both UPM and Versowood in the Finnish and European wood industries. The combined efforts of these two industry leaders are expected to create further opportunities for growth, particularly in the areas of wood supply, sawmill operations, and the production of renewable wood-based products. The strategic move also highlights the importance of sustainable business practices in the evolving timber and pulp sectors.
In conclusion, the strategic partnership between UPM and Versowood marks a significant step forward for both companies. With UPM’s pulpwood and sawmill by-products strengthening wood supply and Versowood’s acquisition of the Korkeakoski sawmill, this collaboration positions both companies for continued success. Their shared commitment to sustainability and operational efficiency will help them meet the demands of the ever-evolving European wood market while contributing to the broader goal of sustainability in the industry. The partnership also represents a positive development for the Finnish timber sector, reinforcing Finland’s position as a key player in the European and global timber markets.
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Tags: European sawmill industry, Finnish wood market, Korkeakoski sawmill, sawmill, sustainability, UPM, Versowood, woodworking, woodworking and processing
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