UPM-Kymmene Corporation announced on September 23, 2025, a strategic review of the UPM Plywood business area to assess options for maximizing its long-term potential in an evolving market environment. UPM’s Board of Directors has today approved a demerger plan concerning the separation of UPM Plywood business area into a new independent listed company, to be named WISA Group Plc. The demerger is subject to approval by UPM’s Extraordinary General Meeting expected to be held in early September 2026 at the latest. The planned completion date of the demerger is October 31, 2026. A demerger and listing prospectus will be published separately.

Based on the strategic review, the Board of Directors of UPM has approved a demerger plan concerning a partial demerger of UPM. According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or mainly serving the UPM Plywood business area, are transferred to WISA Group Plc (“WISA Group”), a company to be established in the demerger (the “Demerger”).

UPM intends to apply for admitting the shares of WISA Group for trading on the official list of Nasdaq Helsinki Ltd (“Nasdaq Helsinki”). Upon the completion of the Demerger, WISA Group would initially have the same shareholder structure as UPM.

Strategic rationale of the Demerger

According to the assessment of the Board of Directors of UPM, the separation of the Plywood business area into a new publicly listed company would increase shareholder value by creating an integrated platform focused solely on pursuing the strategic priorities and growth opportunities of the Plywood business area. The separation will also simplify governance and decision-making structures, foster more direct accountability, and enhance UPM’s focus on its core businesses. It will also provide increased visibility to investors into key value drivers specific to the Plywood business area, which can facilitate the fair valuation of the business and provide more flexibility for accessing external capital. The separation further allows the Plywood business area to attract new investors who are interested in investing directly in an independent company focused on high value‑added end-use segments, including construction, LNG shipbuilding and vehicle flooring solutions. This also benefits the value creation for UPM’s current shareholders.

“We believe that this change in our business portfolio will create long-term value for UPM's shareholders. Separating the plywood business into its own growth path strengthens its future prospects and clarifies UPM's business portfolio," says Massimo Reynaudo, UPM's President and CEO.

"As an independent company, we will be well positioned to execute a focused strategy that combines our premium market position, scalable operational leverage and disciplined growth. Our strong customer partnerships and advanced plywood solutions give us a solid foundation and excellent value creation potential over time," says Tuija Suur-Hamari, EVP, UPM Plywood.

Source: pulpapernews.com