UPM and Tornator signed a letter of intent on forestry land sales and long-term wood supply. According to the announcement, Tornator will annually sell a significant volume of wood from the company’s forests to UPM mills in Eastern Finland.
Additionally, the companies have agreed on forestry land sales covering 23,000 hectares of UPM-owned forest estates in North Karelia to be sold to Tornator. The forests are located in the municipalities of Ilomantsi, Juuka, Lieksa and Polvijärvi. Both of them are PEFC and FSC certified. The parties have agreed not to disclose the value of the agreements.
Sauli Brander, SVP, UPM Wood Sourcing and Forestry, commented:
“Our mills in Eastern Finland use all wood assortments and Tornator owns a significant number of FSC certified (FSC C 123368) forests in their vicinity with a versatile range of tree species. This agreement strengthens the wood supply to UPM mills and increases the FSC certified wood volume in our mills in Eastern Finland.
This forestry land sales is different than our previous investor agreements as the buyer is an established forest owner in the vicinity of our mills and thus able to flexibly supply wood to UPM.”
As part of the real estate portfolio development UPM has for several years regularly sold forest assets located far from its mills.
Tornator is a leading company specialised in responsible forestry with own forests in Finland, Estonia and Romania. The group had approximately EUR 97 million turnover in 2016 and the balance sheet grew close to 1.4 billion euros. The group employs around 200 people.
Earlier UPM signed an agreement on the sale of its hydro power facilities in Steyrermühl, Austria.
The company is largely focused on fibre- and biomass-based businesses, recyclable raw materials and products. UPM integrates bio and forest industries and operates across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA (Europe and North America) and UPM Plywood.