Friday, December 26, 2025
UPM, a global leader in sustainable material solutions, has reached a significant milestone with the launch of commercial wood-based chemical production at its Leuna biorefinery in Germany. This refinery, the largest industrial-scale biochemicals investment in Europe, has begun the production and commercialization of industrial sugars.
After successfully initiating the industrial-scale hydrothermal breakdown of wood earlier this year, the biorefinery has now achieved stable operation in separating lignin and sugars. This crucial process step is essential for converting sugars into renewable glycols and lignin into renewable functional fillers.
“Leuna is significant proof of UPM’s commitment to scaling up innovative, high-performance bio-based material solutions. Our biochemical innovations enable us to enter new markets, create long-term value and reinforce our position as a leader in next-generation, sustainable materials. Reaching this milestone is a major step towards full operations at Leuna, which is the world’s first commercial-scale biorefinery turning wood into bio-based chemicals,” says Massimo Reynaudo, President and CEO of UPM.
Consumer brands are interested in renewable materials that offer significant CO2 saving potential compared to fossil products and existing recycled or renewable alternatives. Glycols can be used, for example, in PET packaging, polyester textiles, and cosmetics, while lignin-based renewable functional fillers offer a sustainable replacement for carbon black and silica in rubber and plastic applications.
UPM anticipates launching additional commercial products from the Leuna biorefinery in the first half of 2026. Once fully operational, the facility will annually produce 220,000 tonnes of advanced biochemicals sourced from sustainably harvested hardwood.
The Leuna biorefinery is instrumental in driving the shift from fossil-based to renewable materials across various industries. UPM’s overall strategy supports the EU’s goals for decarbonization and industrial competitiveness, positioning bio-based innovation as a key growth driver for Europe.
About UPM
UPM is a material solutions company with leading global market positions in several businesses. They contribute to the sustainable transformation of society with resource-efficient material solutions made from renewable feedstocks.
“We are recognized for our sustainability by third parties, including EcoVadis and the Dow Jones Sustainability Indices. Our shares are listed on the Nasdaq Helsinki Ltd.”
“Every day, we create value for our customers through the quality of our products, the reliability of our service, and the sustainability of actions across the supply chain. We want to be the trusted partner to our customers and stakeholders, making a positive difference through our daily actions and decisions.”
UPM’s broad portfolio supports a wide range of industries with renewable fibres, advanced materials, decarbonisation solutions, and communication papers. They collaborate with industries and brands worldwide. Their roots are in the paper and forest industries, and they remain an important part of UPM’s business, while their growth ambitions focus on expanding their high-value, material science-driven operations.
Read more news on: sustainability, forestry, forest products, woodworking solutions, paper products
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Tags: bio-based material, decarbonisation, forest products, packaging, paper industry, Sustainable Forest, UPM, wood solution
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