UPM and Sappi Submit Remedies in European Commission Review of Proposed Graphic Paper Joint Venture

UPM and Sappi have submitted proposed remedies to the European Commission as part of its ongoing review of their planned graphic paper joint venture. The commitments cover capacity management, customer safeguards and investments in environmental performance.

The proposed remedies are intended to support the Commission's review process and do not change UPM's position that the transaction does not raise competition concerns.

The commitments cover several areas relating to the future operations of the joint venture. These include capacity optimization for the supply of certain paper grades in Europe, together with related disclosures, with the aim of maintaining a competitive and stable market despite declining demand. The proposals also take environmental performance into account.

Additional commitments include commercial safeguards for customers and investments in decarbonization, electrification and energy efficiency. Any specific measures required to implement these commitments would be undertaken by the joint venture following its establishment.

UPM maintains that the proposed joint venture would strengthen the long-term competitiveness, sustainability and resilience of the European graphic paper industry. The company described the transaction as a response to the structural decline of graphic paper markets in Europe, arguing that the combination would allow a more orderly adjustment of industry capacity while maintaining reliable customer supply and generating efficiencies.

The market challenges were further reflected in the third quarter of 2026, when European graphic paper industry sales declined by 7% year on year.

The European Commission will assess the proposed remedies as part of its ongoing review. UPM and Sappi said they would continue engaging constructively with the Commission but declined to comment further while the regulatory process remains underway.

The Commission's final decision is expected by the end of 2026 or shortly thereafter.