Monday, September 9, 2024
UPM, a global leader in renewable fibers, advanced materials, and decarbonisation solutions, held its Capital Markets Day in London, United Kingdom, under the theme “From Transformation to Growth.” President and CEO Massimo Reynaudo, alongside the Group Executive Team, provided key updates on the company’s strategy for accelerating growth in the coming years.
Over the past 15 years, UPM has successfully evolved from a paper producer in Europe’s declining market to a diversified global supplier of advanced materials. The company now focuses on renewable solutions, driving its leadership in sustainability and delivering a total shareholder return of 14% per year. The company has been recognized for its sustainability achievements and has effectively allocated capital to enhance shareholder value.
As UPM moves into its next phase, the company is set to accelerate growth across its business portfolio, particularly in renewable fibers, advanced materials, and decarbonisation solutions. The pulp segment, part of UPM’s renewable fibers business, remains a key focus, with UPM looking to optimize production in Uruguay. Advanced materials, including adhesive materials, specialty papers, and plywood, represent another area of expansion, with the company targeting both current and adjacent markets. Additionally, UPM’s decarbonisation solutions are poised for growth, as the company prepares to launch its biochemicals business later this year and scale up its biofuels and CO2-free energy production.
“Our $3.47 billion investment in Uruguay’s pulp business will play a crucial role in driving future earnings,” said Reynaudo. “As we expand into advanced materials and decarbonisation solutions, we’re positioning ourselves for growth in higher-growth geographies.”
UPM emphasized that it will maintain its disciplined capital allocation approach while pursuing significant growth. The company plans to focus on opportunities that offer strong returns, driven by demand growth and competitive advantages. UPM also reaffirmed its commitment to delivering predictable dividends, with potential for share buybacks to complement returns to shareholders.
“We are dedicated to creating value for our customers through sustainable and renewable resources while reducing our environmental footprint,” Reynaudo added. “Our leadership in sustainability is built on globally respected standards and science-based actions, which will continue to be a priority as we raise the bar even higher.”
With a balanced portfolio and a clear strategy, UPM is ready to embark on its next phase of growth, reinforcing its position as a global leader in sustainable solutions.
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