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© UPM

UPM expands profitable plywood division

Article by Hannes Plackner, translated by Robert Spannlang | 29.04.2015 - 09:34
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© UPM

Finnish wood, paper and packaging group UPM, Helsinki, intends to expand its plywood division by investing € 40 million in its Estonian plant in Otepää. This upgrade should double the output in that facility to 90,000 m³/yr by 2016 and raise the group’s total plywood production of currently 199,000 m³/yr by 22%. The plywood production was recently one of UPM’s more profitable lines of business. In the first quarter, the Finns achieved an operating profit margin of 16%. Sales amounted to € 119 million, primarily fuelled by industrial plywood demand, according to the UPM quarterly report.

From January to March, UPM overall product sales totalled € 2.49 billion. Operating profit was € 203 million (8.2%). Both values were roughly on last year's levels.