UPM and Sappi have formally submitted remedy proposals to the European Commission as part of its ongoing review of the planned graphic paper Joint Venture.
The proposed remedies have been offered to support the ongoing review process and do not change UPM’s view that the transaction does not raise competition concerns. The remedies consist of commitments across a range of areas relating to the future operations of the Joint Venture. They include capacity optimization for the supply of certain paper grades in Europe, and related disclosures, with a view to maintaining a competitive and stable market despite the ongoing decline in demand, while taking into account environmental performance. They also include certain commercial safeguards for customers, and investments in decarbonization, electrification and energy efficiency. Any specific measures to give effect to these commitments would be taken forward by the Joint Venture following its establishment.
UPM continues to believe that the planned Joint Venture would support the long-term competitiveness, sustainability and resilience of the European graphic paper industry. The Joint Venture is a rational response to the structural decline of graphic paper markets in Europe and would enable a more orderly adjustment of industry capacity while maintaining reliable customer supply and generating significant efficiencies. The challenges faced by the graphic paper markets in Europe were further evident in the third quarter of 2026, with industry sales declining by 7% year on year.
The European Commission will now assess the proposed remedies as part of its ongoing review process.
UPM and Sappi continue to engage constructively with the Commission. The companies are unable to comment further on the details of the review while the process remains ongoing.
The Commission's final decision is expected by year-end or shortly thereafter.