UPM's Dual Approach: Sustainability and Restructuring in Focus
June 12, 2025, 6:24 am
In the ever-evolving landscape of business, UPM stands at a crossroads. The Finnish company is making waves with two significant initiatives: enhancing sustainability in forestry and restructuring its plywood operations. Both efforts reflect a commitment to adapt and thrive in a challenging environment.
On June 10, 2025, UPM announced a deepening of its collaboration with the Baltic Sea Action Group (BSAG). This partnership, which has spanned over 15 years, is now focusing on forestry water protection. The goal? To promote sustainable practices that safeguard water quality and mitigate climate impacts.
Forests are the lungs of our planet. They breathe life into ecosystems and provide essential resources. Yet, they are under threat. UPM recognizes this and is stepping up. The company aims to develop new practices in peatlands and other critical areas. This initiative is part of UPM's Forest Action program, which seeks to lead the charge in sustainable forestry.
Research is the backbone of this initiative. UPM plans to establish research plots to explore effective ways to reduce environmental impacts. These plots will serve as living laboratories, where scientists can study the intricate relationships between forestry practices, water quality, and carbon cycles. The insights gained will be invaluable. They will help shape guidelines that can be implemented across UPM’s operations and beyond.
But research alone is not enough. Practical measures are equally crucial. UPM is working on new guidelines for water protection in forestry. These guidelines will apply to both UPM-owned forests and privately owned lands. The aim is to raise awareness among forest owners about the importance of water bodies in forest management. Small changes can lead to significant improvements. Adjusting harvesting methods or the types of machinery used can restore water conditions and enhance biodiversity.
This commitment to sustainability is not just a trend; it’s a necessity. The impacts of forestry on water quality and carbon balance are profound. UPM's collaboration with BSAG exemplifies a long-term vision. It’s a multifaceted approach that addresses various environmental challenges, from harmful chemicals to nutrient recycling.
However, while UPM pushes forward in sustainability, it is also navigating the complexities of organizational change. On the same day, the company concluded change negotiations within its plywood division in Finland. This restructuring aims to enhance competitiveness in a tough market.
The plywood sector is facing headwinds. UPM is responding by improving efficiency and profitability. The negotiations involved around 100 senior salaried employees and directors. As a result, nine positions will be eliminated. This decision is not taken lightly. UPM is committed to supporting those affected, offering services and training aimed at re-employment.
Organizational change is like a ship adjusting its sails. It requires careful navigation and foresight. UPM is not just cutting jobs; it is reshaping its operational model. The goal is to foster an environment that encourages job rotation and skills development. This approach will prepare the workforce for future challenges.
The plywood division is vital to UPM’s portfolio. It produces high-quality WISA® plywood and veneer products used in various industries, from construction to shipbuilding. In 2024, UPM Plywood reported sales of €430 million, employing around 1,600 people. The restructuring aims to ensure that this division remains competitive and resilient.
Both initiatives reflect UPM's dual focus: sustainability and organizational efficiency. The company is aware that the future demands adaptability. As environmental concerns grow, so does the need for responsible practices. UPM’s commitment to forestry water protection is a step in the right direction. It aligns with global sustainability goals and demonstrates leadership in the industry.
At the same time, the restructuring of UPM Plywood highlights the realities of business. Companies must evolve to survive. UPM is taking proactive steps to ensure its operations remain robust. By investing in its workforce and refining its processes, UPM is positioning itself for long-term success.
In conclusion, UPM is navigating a complex landscape with two significant initiatives. The collaboration with BSAG marks a commitment to sustainable forestry practices. Meanwhile, the restructuring of UPM Plywood reflects a strategic response to market challenges. Together, these efforts illustrate a company that is not just reacting to change but actively shaping its future. UPM is renewing its commitment to the environment while ensuring its operations remain competitive. This dual approach may well serve as a model for other companies facing similar challenges.
On June 10, 2025, UPM announced a deepening of its collaboration with the Baltic Sea Action Group (BSAG). This partnership, which has spanned over 15 years, is now focusing on forestry water protection. The goal? To promote sustainable practices that safeguard water quality and mitigate climate impacts.
Forests are the lungs of our planet. They breathe life into ecosystems and provide essential resources. Yet, they are under threat. UPM recognizes this and is stepping up. The company aims to develop new practices in peatlands and other critical areas. This initiative is part of UPM's Forest Action program, which seeks to lead the charge in sustainable forestry.
Research is the backbone of this initiative. UPM plans to establish research plots to explore effective ways to reduce environmental impacts. These plots will serve as living laboratories, where scientists can study the intricate relationships between forestry practices, water quality, and carbon cycles. The insights gained will be invaluable. They will help shape guidelines that can be implemented across UPM’s operations and beyond.
But research alone is not enough. Practical measures are equally crucial. UPM is working on new guidelines for water protection in forestry. These guidelines will apply to both UPM-owned forests and privately owned lands. The aim is to raise awareness among forest owners about the importance of water bodies in forest management. Small changes can lead to significant improvements. Adjusting harvesting methods or the types of machinery used can restore water conditions and enhance biodiversity.
This commitment to sustainability is not just a trend; it’s a necessity. The impacts of forestry on water quality and carbon balance are profound. UPM's collaboration with BSAG exemplifies a long-term vision. It’s a multifaceted approach that addresses various environmental challenges, from harmful chemicals to nutrient recycling.
However, while UPM pushes forward in sustainability, it is also navigating the complexities of organizational change. On the same day, the company concluded change negotiations within its plywood division in Finland. This restructuring aims to enhance competitiveness in a tough market.
The plywood sector is facing headwinds. UPM is responding by improving efficiency and profitability. The negotiations involved around 100 senior salaried employees and directors. As a result, nine positions will be eliminated. This decision is not taken lightly. UPM is committed to supporting those affected, offering services and training aimed at re-employment.
Organizational change is like a ship adjusting its sails. It requires careful navigation and foresight. UPM is not just cutting jobs; it is reshaping its operational model. The goal is to foster an environment that encourages job rotation and skills development. This approach will prepare the workforce for future challenges.
The plywood division is vital to UPM’s portfolio. It produces high-quality WISA® plywood and veneer products used in various industries, from construction to shipbuilding. In 2024, UPM Plywood reported sales of €430 million, employing around 1,600 people. The restructuring aims to ensure that this division remains competitive and resilient.
Both initiatives reflect UPM's dual focus: sustainability and organizational efficiency. The company is aware that the future demands adaptability. As environmental concerns grow, so does the need for responsible practices. UPM’s commitment to forestry water protection is a step in the right direction. It aligns with global sustainability goals and demonstrates leadership in the industry.
At the same time, the restructuring of UPM Plywood highlights the realities of business. Companies must evolve to survive. UPM is taking proactive steps to ensure its operations remain robust. By investing in its workforce and refining its processes, UPM is positioning itself for long-term success.
In conclusion, UPM is navigating a complex landscape with two significant initiatives. The collaboration with BSAG marks a commitment to sustainable forestry practices. Meanwhile, the restructuring of UPM Plywood reflects a strategic response to market challenges. Together, these efforts illustrate a company that is not just reacting to change but actively shaping its future. UPM is renewing its commitment to the environment while ensuring its operations remain competitive. This dual approach may well serve as a model for other companies facing similar challenges.