Delivering value, innovation and growth in a volatile world

The Bioforest Industry

Hans Sohlström

Executive Vice President

wēi =

danger

jī =

opportunity

crisis =

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The Bioforest Industry

Low CO2

emissions

Renewable

materials

Recyclable

products

New bio-based

products

CO2 capturing

products

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Content

1. New business development

2. UPM – The Biofore Company

3. Conclusions

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40% of wood ends up in energy

70% of Finland's renewable energy

CHP: combined heat and power production

Liquid biofuels (CHPF concept):

Biodiesel

Bioethanol

Bio-oil

Bioenergy

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Biomaterials

Construction

Components

Labels

Packaging

Composites

Waste Component System World-class design

Shanghai

EXPO 2010

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Biochemicals

Cosmetics

Food and feed

Electronics

Medicines

Coatings

Plastics and

packaging

Paper and

wood products

Composites

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Content

1. New business development

2. UPM – The Biofore Company

3. Conclusions

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UPM leads the integration of bio and forest industries

into a new, sustainable and innovation-driven future.

UPM - The Biofore Company

Paper Energy and Pulp Engineered Materials

Biofuels Biochemicals Biocomposites Biofibrils

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UPM Biofibrils

UPM ForMi

UPM ProFi

Wood-based biomass procurement and logistics

Labels and composites

Bioenergy – heat and power

Biofuels for transport

Biochemicals

Bio- fibrils

Pulp, paper, plywood and wood products

10

UPM BioVerno

UPM Grada

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Building new on current businesses

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Developing current businesses

Production

Sales network

1 4

1

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2

3

4

5

6

RESEARCH CENTRE

BIODIESEL

SAW MILL

PAPER MILL

BIOMASS POWER PLANT

PULP MILL

1

2

3

4

5

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Integration is a key success factor

► 1th wood based biodiesel

► 150 million € investment

► 100.000 t/a 2G biodiesel

► Start-up in 2014

Biorefinery case: UPM Lappeenranta

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1. The new bioforest industry

Renewable and recyclable materials

CO2 capturing products and bioenergy

2. Bio-based business development

Cash-flow from current businesses

New bioenergy, -materials, -chemicals

3. UPM – The Biofore Company

Integrating bio and forest industries

Leading as a forerunner

Conclusions