UPM has reported subdued sawn timber demand but expects its plywood deliveries to continue to increase in H1, 2025.

UPM’s newly published annual 2024 results include figures for its Fibres Division, comprising both pulp and timber divisions, the latter consisting of four sawmills in Finland.

In 2024, demand for sawn timber was still subdued due to low construction activity in many areas. Prices recovered compared to 2023 but were offset by strongly increasing wood costs.

The company’s Finnish pulp mills operated profitably in the challenging markets.

The Fibres division, which does not break down specific financials for the timber business, recorded comparable EBITDA of €844m for 2024 full year (2023: €407m), with sales being €3.728bn (2023: €3.044bn).

Meanwhile, in the UPM plywood division, demand for sprue plywood in panel trading and veneer continued to be slow in the soft construction markets during 2024. Demand for birch plywood in panel trading was solid and mitigated lower demand from industrial end-uses such as vehicle flooring. Demand for LNG end-use birch plywood was robust.

The positive impact of higher delivery volumes was more than offset by lower sales prices. Plywood deliveries are expected to continue to increase in H1, 2025.

The plywood division’s comparable EBITDA was €65m for the full year 2024 (2023: €77m). Sales were €430m (2023: €422m).

Group-wide, UPM president and CEO Massimo Reynaudo said group performance in 2024 improved over 2023, supported by a good contribution from a new pulp mill in Uruguay and modestly improved volumes in the advanced materials business.

Source: ttjonline.com