The firm is expected to list on Nasdaq Helsinki following completion of the demerger in late 2026.
UPM has approved a plan to separate its plywood business into a new independent listed company, as part of efforts to sharpen its strategic focus.
The Finnish group said its board had agreed to a partial demerger that would see UPM Plywood spun off into a new entity, to be named WISA Group.
The proposal follows a review announced in Sep 2025, which examined options to maximise the long-term potential of the plywood division.
Under the plan, all assets and liabilities related to the plywood business would be transferred to the new company, which is expected to be listed on the Nasdaq Helsinki exchange.
The demerger is subject to approval by shareholders at an extraordinary general meeting, scheduled to take place by early Sep 2026. If approved, completion is planned for 31 Oct 2026, with trading in WISA Group shares due to begin shortly afterwards.
Strategic focus and growth plans
UPM said the move would allow the plywood business to pursue its own strategy and growth opportunities, while simplifying the group’s overall structure.
The company said the separation could improve transparency for investors and provide greater flexibility for accessing external capital.
“We believe that this change in our business portfolio will create long-term value for UPM’s shareholders,” said Massimo Reynaudo, the company’s president and chief executive. “Separating the plywood business into its own growth path strengthens its future prospects and clarifies UPM’s business portfolio.”
Tuija Suur-Hamari, executive vice-president of UPM Plywood, said the new company would be “well positioned to execute a focused strategy” based on its market position and customer relationships.
Structure and operations
Following the demerger, WISA Group is expected to operate as one of Europe’s leading plywood producers, supplying products for construction, parquet manufacturing and other industrial applications.
The business operates seven production units across five locations in Finland and Estonia, with a production capacity of about 785,000 cubic m per year.
In 2025, the plywood division reported sales of €409m and comparable earnings before interest, tax, depreciation and amortisation (EBITDA) of €55m.
UPM said Suur-Hamari would become president and chief executive of WISA Group once the demerger is completed. Other members of the management team will be appointed before completion.
The company added that the demerger could still be withdrawn if circumstances change and it is no longer considered to be in the best interests of shareholders.
