CXO INSIGHT

Firstly , tell me more about UPM Biochemicals and how it started ?

UPM ’ s core competence – in sourcing and processing wood – is proven over 150 years . Now , the company is extending its product portfolio into new innovative businesses such as biochemicals , as part of our vision to create a “ future beyond fossils ” and to further increase the positive climate value of the forest biomass we use .

UPM Biochemicals is part of UPM The Biofore Company . Our woodbased biochemicals offer sustainable , competitive , high quality renewable solutions for various industries and applications . As our biochemicals can be fully integrated into existing production and recycling processes , they are one key enabler for the transformation of the entire chemical value chain towards renewable circularity .

Following a ten-year R & D journey , our new € 750 million facility under construction in Leuna , Germany , will convert sustainably sourced hardwood into two vital ingredients of industrial manufacture – bio-monoethylene glycol ( BioMEG ) and lignin-based renewable functional fillers ( RFF ). The total annual production capacity of the biorefinery will be 220,000 tonnes of biochemicals , enabling the vital shift away from fossil-based renewable materials across a wide range of industries , such as automotive , textiles and packaging . We also produce renewable naphtha , an excellent wood-based raw material for plastics , at our Lappeenranta biorefinery in Finland .

Our industrial-scale biorefinery at Leuna is a world-first , not only for UPM but for the biochemicals category . One hundred percent of the wood used to produce UPM renewable biochemicals in the UPM biorefinery is either FSC or PEFC certified and taken from local forests where biodiversity and natural ecosystems are preserved . All our wood is fully traceable , controlled and covered by a verified third party chain of custody .

What does you customer base look like ?

We are launching a new generation of biochemicals sourced from sustainably and responsibly managed forests that will enable brands to redefine their net zero targets and switch out of fossilbased chemical intermediates for good .

Dr Michael Duetsch , VP Biochemicals , UPM

Our customers are organisations that urgently want to work towards a net zero circular economy and who benefit from the sustainability value our products offer . They include those in various end use industries , including packaging , automotive , consumer goods and textiles , as well as producers and manufacturers of rubbers , plastics , yarns and coolants , for example .

“ Our industrial-scale biorefinery at Leuna is a worldfirst , not only for UPM but for the biochemicals category .”

UPM Biochemicals has embarked on a mission to transform the automotive and textile industries towards sustainability . The company is extending its product portfolio into biochemicals as part of its vision to create a future beyond fossil fuels . Its new € 750 million facility under construction in Leuna , Germany , will convert sustainably sourced hardwood into two vital ingredients of industrial manufacture . Dr Michael Duetsch , VP Biochemicals at UPM , explains how UPM will help the vehicle and fashion industries become more sustainable and the company ’ s aims for the future .

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