During UPM’s Capital Markets Day last week, the management team of the Finnish group focused on the company’s spearheads for growth, sustainability as a value driver and actions to ensure performance.
“UPM is in a unique position today. We have truly transformative growth projects in Uruguay and in Germany under construction, proceeding at full speed. These will have a significant impact on our future earnings and returns, as well as the positioning of the whole company. The long-term demand growth fundamentals remain strong for most of UPM businesses even in the context of the COVID-19 pandemic. In fact, the increasing demand for sustainable alternatives and the search for climate positive solutions add to our business opportunities. Our transformation progresses into a new and exciting era of growth”, says CEO Jussi Pesonen.
“Over the past 10 years we have developed the technology and business concepts for our biofuels business and for the new biochemicals business. We have built the foundation for a highly competitive new pulp operation in Uruguay. We have also developed new sustainable higher value-added products in our specialty packaging materials businesses. All these will offer our customers unique value, and the concepts are hard to replicate”, Pesonen emphasised.
At the same time with the execution of transformative growth investments UPM continues to ensure performance and drive cost competitiveness.
Lockdowns related to the COVID-19 pandemic have negatively impacted short term graphic paper demand, on top of the long-term end-use decline. The effects of the lockdowns have weakened the economic outlook which affects the outlook for demand for graphic paper.
“These developments underline the need for uncompromising cost competitiveness, particularly in UPM Communication Papers, where we have already announced plans to improve our cost efficiency. Continuous improvement of performance in all businesses and maintaining a strong balance sheet are the best foundation for business success now, and in the long term.
UPM’s value creation today and in the future is based on offering sustainable products and solutions to consumers and businesses. We are confident with our Biofore strategy and committed to growing businesses for a future beyond fossils,” says Pesonen.