UPM to separate plywood business into WISA Group – stronger industrial focus targeted

UPM-Kymmene Corporation will separate its plywood business into a new independent company. The company’s Board of Directors has approved a demerger plan under which UPM Plywood will form a new entity to be named WISA Group Plc.

In the arrangement, all production units, assets and liabilities related to the plywood business will be transferred to the new company. The aim is to create a more focused industrial entity dedicated solely to plywood production and development.

Strategic step to sharpen business focus

UPM launched a strategic review of its Plywood business in autumn 2025 to evaluate options for strengthening its long-term potential.

According to the company, the separation is intended to improve the business’s strategic focus and operational agility, while also simplifying UPM’s overall structure.

“Separating the plywood business onto its own growth path strengthens its future prospects and clarifies UPM’s business portfolio,” says UPM President and CEO Massimo Reynaudo.

Tuija Suur-Hamari, currently heading UPM Plywood, highlights that as an independent company, WISA Group will be better positioned to develop its operations in premium segments such as construction, vehicle applications and shipbuilding.

Strong Northern European production base

Following the demerger, WISA Group will become one of the leading plywood producers in Europe. The company operates seven production units across Finland and Estonia, with an annual capacity of approximately 785,000 cubic metres.

In 2025, UPM Plywood reported sales of EUR 409 million and comparable EBITDA of EUR 55 million.

WISA Group’s products are used in construction, vehicle flooring, LNG shipbuilding and various industrial applications.

Implementation subject to approval

The demerger is subject to approval by an Extraordinary General Meeting, expected to be held by early September 2026. The target is to complete the arrangement by the end of October 2026.

WISA Group is expected to begin operations as an independent company immediately after the completion of the demerger.

UPM has stated that the arrangement will not affect its other business areas, and the company will continue focusing on its core operations.