Finnish forestry group UPM-Kymmene said Tuesday it has started a strategic review of its plywood business, which could lead to a sale, demerger or an initial public offering of the unit.
The review is part of a wider corporate restructuring as the company navigates weak markets and high costs, which have recently prompted production cuts and plans to close a paper mill.
The Plywood business, which generated 430 million euros in sales in 2024, employs about 1,600 people and operates mills in Finland and Estonia, the company said.
UPM said the review aims to find the best path for the business while maximizing value for shareholders.
"UPM has transformed into a material solutions company with a broad portfolio of attractive businesses," CEO Massimo Reynaudo said in a statement.
"The decision to initiate a strategic review of UPM Plywood reflects our commitment to position each UPM business for long-term success."
The move follows a series of restructuring efforts at UPM, including recent announcements to extend shutdowns at its Finnish pulp mills and permanently end paper production at its Kaukas site.
The company has been divesting wood-product assets for over a decade as it shifts its strategic focus.
UPM said the review of the plywood unit is expected to be completed by the end of 2026.
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