UPM-Kymmene Corporation's Board of Directors has approved a demerger plan to separate the UPM Plywood business area into a new independent listed company named WISA Group Plc. The partial demerger would transfer all assets and liabilities of the plywood business to the new entity, with UPM shareholders receiving one share in WISA Group for each UPM share they hold. The plan was announced by the company following a strategic review initiated in September 2025.
The demerger requires approval at an Extraordinary General Meeting expected by early September 2026, with a planned completion date of October 31, 2026. Trading in WISA Group shares on Nasdaq Helsinki is expected to begin on or about November 2, 2026. The plywood business will be reported as discontinued operations under IFRS 5 starting from the second quarter of 2026, according to UPM.
UPM's Board assessed that the separation would increase shareholder value by creating a focused platform for the plywood business, simplifying governance structures, and enhancing visibility into the unit's value drivers. "Separating the plywood business into its own growth path strengthens its future prospects and clarifies UPM's business portfolio," said Massimo Reynaudo, UPM's President and CEO.
WISA Group would operate as one of Europe's leading plywood producers with seven production units across five locations in Finland and Estonia, offering products for construction, LNG shipbuilding, vehicle flooring and parquet manufacturing. The plywood business reported sales of Euro 409 million and comparable EBITDA of Euro 55 million in 2025, with a theoretical maximum production capacity of approximately 785,000 m3 per year.
Tuija Suur-Hamari, currently Executive Vice President of UPM Plywood, has been appointed President and CEO of WISA Group effective upon completion of the demerger. The company has received a binding advance tax ruling from the Finnish Tax Administration confirming the transaction will be treated as tax-neutral. UPM's Board retains the right to cancel the demerger if circumstances change before completion.
