Kallesoe_Hasslacher_klein.jpg

Production of wood construction elements © Dinah Urban

Record-strong year 2017 for UPM

Article by Robert Spannlang | 05.02.2018 - 08:24

UPM reached record earnings in 2017, according to annual results presented by the Finnish forest products company. "Fundamentals for UPM businesses in 2018 continue to be favourable. UPM is in better standing than ever. The company has strong businesses and a portfolio of attractive growth opportunities", a UPM spokesperson said.

Despite increased variable costs, the division’s production facilities located in Finland, Estonia and Russia experienced higher volumes and sales prices. Delivery volumes were 811,000 m3, up 6% from 764,000 m3 in 2016. The division’s sales were €484m in 2017, up 9% from €444m in 2016, whereas operating profits amounted to €62m (2016: €58m).

UPM accredited the growth mostly to a market environment which has been favourable in Europe during 2017: Spruce plywood demand growth was driven by increased activity in the building and construction industry. Also demand in birch plywood-related industrial applications such as vehicle floors and LNG carrier insulation material showed an upward trend. Furthermore, last year saw the introduction of UPM Plywood new fire retardant WISA-SpruceFR structural plywood for building and construction and a new growth project at the UPM Chudovo plywood mill in Russia was announced.

Group-wide UPM recorded an overall pre-tax profit €1.186bn and sales of €10bn.