upm-kymmene oyj (UPM1V) Snapshot

Ashland Inc. and UPM announced they have entered into a cooperative agreement to develop and commercialize products containing UPM's Biofibrils technology. UPM Biofibrils are micro- and nanofibrillated cellulose products that can be used for shaping materials and giving them new characteristics. In this collaboration, UPM and Ashland will jointly study the use of biofibrils in a wide range of industrial application opportunities. For example, biofibrils might be used to improve the quality and performance of a broad array of polymer products that include coatings and construction materials, home and car care products, and energy drilling applications. The collaboration marks a milestone for two companies with extensive expertise in cellulose technology. UPM has pursued research and development of biofibrils technology for several years and has a large portfolio of patent applications and production experience. Ashland has its own research and patents in microfibrillar cellulose technology.

UPM-Kymmene Oyj and Renmatix, Inc. have entered into a non-exclusive joint development agreement (JDA) in the area of biochemicals. Under terms of the JDA both companies will further develop Renmatix's water-based Plantrose(TM) process to convert woody biomass into low-cost sugar intermediates for subsequent downstream processing into biochemicals. Offering cost-competitive bio-alternatives for select petrochemicals on an industrial scale is the long term goal of this initiative.

UPM-Kymmene Oyj (HLSE:UPM1V) is looking for acquisitions. President of UPM's label business, Jussi Vanhanen said, “We see the global (market) growth at around 4% annually, and we will grow in general along with that. If we can find suitable acquisitions, the growth would be faster.” He added, “There are not very many companies that we would want to acquire, but of course we have an open mind (to deals), and we have been making a deal per year.”