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BIOFORE
UPM’s new business focuses in
particular on biofuels, biochemicals
and biocomposites. Its progress in
these fields is based on solid exper-
tise in sourcing and refining forest
biomass.
“The brand-new biorefinery in
Lappeenranta marks the first crucial
investment. We can use this invest-
ment as a basis for judging the poten-
tial scope for future long-termdevel-
opment of this business in a suitable
market segment.”
The company is also building a new
production unit for manufacturing
label materials and speciality papers
at the Changshumill in China. Stock
production of self-adhesive labels will
aim to capture consistent growth in
emerging markets and at developing
products that deliver a high level of
added value.
Capital ideas
Thanks to its wisely chosen strategy,
UPM’s cash flow has remained steady
and the company has secured capital
to fund its top-priority projects, notes
Ståhlberg. Sufficient funding is avail-
able both in risk financing and from
banks and other financing institu-
tions.
“From a business viewpoint, the
challenges of investment are more
related to poor levels of economic
growth and demand. When economic
growth is sluggish, new invest-
ment projects also fail to take off. At
present, minor investments in devel-
opment are enough to meet demand.”
Low investment rates in Europe
Kari Ståhlberg
A new unit to manufacture
label materials and speciality
papers is under construction at
the Changshu mill in China.