Press release

UPM-Kymmene Oyj: UPM unlocks new bio-based markets as Leuna biorefinery produces its first commercial product

(UPM, Helsinki, 19 December 2025 at 12:00 EET) - UPM, a global leader in sustainable material solutions, has achieved an important milestone in the startup of production of commercial, wood-based chemicals in its Leuna biorefinery in Germany. The refinery, which is the largest industrial-scale investment in biochemicals in Europe, has started the production and commercialization of industrial sugars.

After successfully starting up the hydrothermal breakdown of wood on industrial scale earlier this year, the biorefinery has now reached stable operation in separating lignin and sugars. This critical process step is a prerequisite for the conversion of sugars to renewable glycols and lignin to 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 expects to enter the market with further commercial products from Leuna in the first half of 2026. Once fully operational, the facility will produce annually 220,000 tonnes of advanced biochemicals derived from sustainably sourced hardwood.

The Leuna biorefinery plays a key role in enabling the transition from fossil-based to renewable materials across multiple industries. UPM's broader strategy aligns with the EU's ambitions for decarbonization and industrial competitiveness, positioning bio-based innovation as a growth engine for Europe.

Watch this video to learn more about UPM and the Leuna biorefinery.

(Picture of Leuna Biorefinery: UPM)

For further information please contact:
Martin Ledwon, Vice President, Marketing, Sustainability & Communications, UPM Biorefining & Technology, martin.ledwon@upm.com

UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com

UPM Biochemicals
UPM Biochemicals offers innovative, sustainable and competitive wood-based biochemicals for replacing fossil-based raw materials and helping to improve the environmental performance in various applications. End-use segments for renewable glycols include textiles, PET bottles, packaging, coolants, composites, pharmaceuticals, cosmetics and detergents. Lignin-based Renewable Functional Fillers (RFF) offer a sustainable alternative to carbon black and precipitated silica in a broad range of rubber and plastic applications. UPM is building an industrial scale biorefinery in Leuna, Germany to convert solid wood into next generation biochemicals. UPM Biochemicals is accelerating the transition to a circular bioeconomy - where renewable feedstocks, sustainable production and sustainable consumption are the new normal. www.upmbiochemicals.com

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UPM
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,800 people worldwide, with annual sales of approximately €10.3 billion. Our shares are listed on Nasdaq Helsinki Ltd.
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