Versowood Oy has acquired UPM\u2019s Korkeakoski sawmill in a transaction announced today. Alongside the deal, the two companies will establish a broad partnership covering Versowood\u2019s sawmill by-products and pulpwood, aimed at generating synergy benefits. As part of the arrangement, UPM will become a minority shareholder in Versowood Oy.<\/p>\n
Versowood, Finland\u2019s largest private producer of sawn timber, will also become the country\u2019s largest sawmill operator following the acquisition, ranking among the ten largest sawmill operators in Europe. The combined turnover of Versowood and Korkeakoski will exceed EUR 700 million, with production reaching nearly 2 million cubic metres of sawn timber and total employment of around 1,000 people. The agreement remains subject to regulatory approvals, including clearance from the Finnish Competition and Consumer Authority, expected by the end of 2025.<\/p>\n
The Korkeakoski sawmill, originally owned by the Kopra family and sold to Yhtyneet Paperitehtaat (now UPM) in 1988, produces 350,000 cubic metres of pine timber annually and employs approximately 80 people, who will transfer to Versowood under existing employment terms. \u201cIt\u2019s a wonderful, even nostalgic feeling to return as an owner of the Korkeakoski sawmill. I grew up around the sawmill,\u201d said Ville Kopra, CEO of Versowood.<\/p>\n
The acquisition broadens Versowood\u2019s wood procurement area in northern Pirkanmaa, increasing the company\u2019s log use to over 3.5 million cubic metres. \u201cAt the same time, we are increasing cooperation with UPM on by-products and pulpwood,\u201d added Kopra.<\/p>\n
The Korkeakoski mill underwent a major renovation in the summer of 2025, leaving it in good condition. The deal strengthens Versowood Group\u2019s position in timber markets and opens the way for further expansion. The company produces a wide range of products beyond plain sawn timber, including planed, impregnated, graded, finger-jointed and painted timber, glulam, timber bridges, utility poles, wood pellets, and wooden packaging.<\/p>\n
Commentary: a strategic reshuffle in wood processing<\/strong><\/p>\n The transaction represents a straightforward corporate restructuring: UPM is transferring ownership of the sawmill to Versowood in exchange for shares. In practice, this means that UPM retains a link to mechanical wood processing without direct operational responsibility, while Ville Kopra is no longer the sole owner of Versowood.<\/p>\n UPM framed the deal as a confirmation of wood procurement, but its practical implications may be limited. Cooperation on by-products and pulpwood is essentially a continuation of previous arrangements, with Korkeakoski\u2019s saw chips and fibre wood still flowing to UPM. In today\u2019s markets, saw chips are not a scarce commodity\u2014quite the opposite.<\/p>\n The move highlights UPM CEO Massimo Reynaudo\u2019s positioning on mechanical wood processing. With Korkeakoski sold and the plywood business under review, UPM appears ready to withdraw from this segment altogether.<\/p>\n Other integrated companies are moving in a different direction. Stora Enso was close to acquiring Junnikkala and has applied for an environmental permit for a new large sawmill in Imatra. Mets\u00e4 Group, meanwhile, continues to face operational difficulties with its highly modern Rauma sawmill.<\/p>\n A positive aspect of UPM\u2019s retreat is that it could bring an end to long-standing criticism about the company concealing sawmill profitability and using log procurement to support pulpwood supply at high log prices.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":97064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,5812],"tags":[3272,3653,3650],"class_list":["post-97063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-global-trends","tag-upm","tag-versowood","tag-wood-processing","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\n