#Finland #Helsinki #UPM Kymmene #WISA Group #Plywood Business

UPM-Kymmene Corporation Announces Strategic Demerger of Plywood Business

On April 29, 2026, the Board of Directors of UPM-Kymmene Corporation officially approved a demerger plan designed to separate the company’s Plywood business into an independent listed entity named WISA Group Plc. This strategic decision aims to unlock the long-term potential of the Plywood sector amid an evolving market landscape.

Background of the Demerger

The initiative follows a strategic review initiated on September 23, 2025, where UPM scrutinized its Plywood operations to explore avenues for maximizing growth opportunities. The Board believes that the separation will create value for shareholders by paving a focused path for the Plywood business, enhancing governance structures, accountability, and operational transparency.

As proposed, the demerger will see all the assets and liabilities related to UPM’s Plywood operations transferred to the newly formed WISA Group. This change is aimed at enabling a more specialized approach towards capitalizing on market opportunities specific to the Plywood sector, such as construction and LNG shipbuilding, while also attracting investors interested in direct involvement with a focused company.

Rationale Behind the Demerger

UPM's Board envisions that the establishment of WISA Group will simplify governance, improve decision-making, and help in highlighting the essential value drivers unique to the Plywood business. As stated by Massimo Reynaudo, UPM’s President and CEO, this demerger is poised to create lasting value for UPM shareholders, reinforcing the focus on core business units and sketching a clearer business strategy.

Tuija Suur-Hamari, the Executive Vice President of UPM Plywood, also emphasizes that WISA Group will be well-positioned to refine its operational strategies effectively, asserting that their strong customer partnerships and advanced product offerings make for a solid growth foundation.

Details of the Demerger Process

The separation will occur as a partial demerger following Finnish laws. Shareholders of UPM will receive shares in WISA Group on a one-for-one basis, thereby ensuring continuity of interest for current stakeholders. The Extraordinary General Meeting (EGM) to ratify the demerger is expected by early September 2026, with an anticipated completion date set for October 31, 2026. Trading of WISA Group shares on the Nasdaq Helsinki is projected to commence shortly thereafter.

The financial blueprint for WISA Group is robust, with sufficient funding secured to support its operations through the transition, ensuring minimal disruption to services and growth plans.

Market Position and Future Prospects

Post-demerger, WISA Group is anticipated to rank as a leading player in the European plywood market, known for high-quality timber products catering to diverse applications such as construction and vehicle flooring. With operational capabilities across multiple locations in Finland and Estonia, WISA Group aims to produce around 785,000 cubic metres of plywood annually. In 2025, the UPM Plywood segment achieved sales of €409 million, highlighting a promising operating backdrop for the newly established entity.

Conclusion

The demerger of the Plywood business marks a significant milestone for UPM-Kymmene Corporation, setting the stage for WISA Group to carve a niche in the market, leveraging its expertise and resources effectively to maximize shareholder value and capitalize on growth opportunities. The future of both UPM and WISA Group seems poised for innovation and development, reflecting a strategic pivot that aligns with modern market demands and investor expectations.