UPM’s Board of Directors have approved a demerger plan of its Plywood business into a new listed company.
The new independent listed company will be named WISA Group Plc. The demerger is subject to approval by UPM’s Extraordinary General Meeting expected to be held in early September 2026 at the latest. The planned completion date of the demerger is October 31, 2026.
UPM originally announced on September 23, 2025, a strategic review of the UPM Plywood business area to assess options for maximizing its long-term potential in an evolving market environment.
According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or mainly serving the UPM Plywood business area, are transferred to WISA Group Plc.
UPM intends to apply for admitting the shares of WISA Group for trading on the official list of Nasdaq Helsinki Ltd. Upon the completion of the Demerger, WISA Group would initially have the same shareholder structure as UPM.
According to the assessment of the Board of Directors of UPM, the separation of the Plywood business area into a new publicly listed company would increase shareholder value by creating an integrated platform focused solely on pursuing the strategic priorities and growth opportunities of the Plywood business area.
The separation will also simplify governance and decision-making structures, foster more direct accountability, and enhance UPM’s focus on its core businesses.
It will also provide increased visibility to investors into key value drivers specific to the Plywood business area, which can facilitate the fair valuation of the business and provide more flexibility for accessing external capital.
The separation further allows the Plywood business area to attract new investors who are interested in investing directly in an independent company focused on high value‑added end-use segments, including construction, LNG shipbuilding and vehicle flooring solutions.
“Separating the plywood business into its own growth path strengthens its future prospects and clarifies UPM’s business portfolio,” says Massimo Reynaudo, UPM’s President and CEO.
“As an independent company, we will be well positioned to execute a focused strategy that combines our premium market position, scalable operational leverage and disciplined growth,” added Tuija Suur-Hamari, EVP, UPM Plywood.
“Our strong customer partnerships and advanced plywood solutions give us a solid foundation and excellent value creation potential over time.”
Upon completion of the Demerger, WISA Group would comprise seven production units across five locations in Finland and Estonia with a theoretical maximum available capacity of approximately 785,000m3 per year. In 2025, the sales of UPM Plywood business area were €409m and reported comparable EBITDA was €55m.
