The division’s production facilities located in Finland, Estonia and Russia experienced higher volumes and sales prices, more than offsetting increased variable costs. Delivery volumes were up to 811,000m3, (2016: 764,000m3).
The division’s sales were €484m in 2017, up from €444m in 2016, with operating profit of €62m (2016: €58m).
UPM said the market environment was favourable in Europe during 2017, with spruce plywood demand growth driven by increased activity in the building and construction industry. Demand in birch plywood-related industrial applications such as vehicle floors and LNG carrier insulation material was also good.
During the year UPM Plywood introduced new fire retardant WISA-SpruceFR structural plywood for building and construction and announced a new growth project at the UPM Chudovo plywood mill in Russia.
Group-wide UPM recorded an overall pre-tax profit €1.186bn and sales of €10bn.
Its timber business is part of UPM’s Biorefining division, which also includes pulp and biofuels businesses. Sawn timber demand was “good” and market prices increased in the fourth quarter.
