The Board of Directors of UPM-Kymmene Corporation has approved a demerger plan concerning the separation of the Plywood business into a new listed company

UPM-Kymmene Corporation has announced a significant strategic move with the approval of a demerger plan that will separate its Plywood business into a new independent entity, WISA Group Plc. This decision, approved by UPM's Board of Directors, comes as part of a broader strategic review aimed at maximizing the long-term potential of the Plywood business area. The demerger is expected to be completed by October 31, 2026, pending approval from UPM's Extraordinary General Meeting, which is anticipated to take place in early September 2026.

The establishment of WISA Group Plc represents a pivotal moment for UPM as it seeks to enhance shareholder value. By creating a standalone company focused solely on the Plywood segment, UPM aims to streamline governance and decision-making processes, thereby fostering greater accountability. The separation is expected to provide investors with increased visibility into the specific value drivers of the Plywood business, facilitating a more accurate valuation and improving access to external capital. This strategic move is anticipated to attract new investors interested in the high value-added segments that WISA will target, including construction, LNG shipbuilding, and vehicle flooring solutions.

WISA Group is poised to emerge as a leading player in the European plywood market, with a robust operational foundation. Upon completion of the demerger, WISA Group will inherit UPM's existing market position and operational capabilities, including seven production units across Finland and Estonia, with a theoretical maximum capacity of approximately 785,000 cubic meters per year. In 2025, the UPM Plywood business area reported sales of EUR 409 million and a comparable EBITDA of EUR 55 million, underscoring the financial viability of the new entity.

The demerger aligns with broader trends within the general sector, where companies are increasingly seeking to focus on core competencies and enhance operational efficiencies. By spinning off the Plywood business, UPM can sharpen its focus on its remaining operations while allowing WISA Group to pursue a dedicated growth strategy. This separation is expected to clarify UPM's business portfolio and strengthen its competitive positioning in the market.

As the market prepares for the launch of WISA Group, the implications of this demerger extend beyond UPM itself. The move reflects a growing trend among corporations to optimize their business structures in response to evolving market dynamics. With WISA Group set to commence trading on Nasdaq Helsinki around November 2, 2026, this transaction may serve as a bellwether for similar strategic realignments within the sector, as companies seek to capitalize on specialized market opportunities in an increasingly competitive landscape.