Sappi, UPM Sign LoI for $1.65B Joint Venture

22 December 2025: Sappi and UPM have announced to form a 50/50 joint venture focused on graphic papers marks an exciting step forward for the industry. Printers, publishers and brands today need more than just paper. They need security of supply, cost-competitive solutions, ongoing innovation and the confidence that their communication medium is sustainably future-proofed.

A stronger, more resilient European graphic paper partner
The new entity would help construct leading European graphic paper business with the size and scale to better support long-term local industry and intimate connections – while competing more effectively with non-European producers.

Better availability, more efficient supply and dependable service
By combining resources, the joint venture would help ensure better and more efficient availability, using a larger manufacturing and supply chain footprint to deliver timely and consistent service. This is essential to support print as a viable choice for end users, especially in an increasingly competitive communication environment.

Industry-leading sustainability to strengthen the image of print
Both companies share strong environmental commitments and sustainability continues to be one of print’s strongest value drivers. The intention is to ensure that the joint venture accelerates progress toward best-in-class sustainability standards, allowing the publishing and printing community to confidently promote and market print for all communication and advertising needs.

Sappi Europe Flavio Froehli, VP Sales & Marketing says,” For our customers, this proposed joint venture is a natural evolution of Sappi’s commitment to creating lasting value for the print and publishing industry. In a world where digital media dominates, print must continue to prove its relevance and strength. By combining our capabilities, we reinforce the reliability, efficiency, and innovation that keep print competitive – delivering greater long-term value and helping ensure this vital industry remains vibrant, future-ready, and a powerful complement to digital.”

Sappi and UPM intend signing definitive agreements during the first half of 2026 and expect to close the proposed transaction by the end of 2026.

https://www.sappi.com