From wood to chemicals: UPM inaugurates pioneering biorefinery in Germany

(UPM, Leuna, Germany, October 15, 2026 at 15:00 CEST) - UPM today inaugurated its biorefinery in Leuna, Germany, marking the start of a new industrial platform for renewable chemicals made from wood. The biorefinery converts lignocellulosic biomass, primarily wood from sustainably managed forests and sawmill residues, into biochemicals. With an annual capacity of 220,000 tonnes, it is the largest facility of its kind in the world. The ramp-up has progressed further. Enzymatic hydrolysis and the production of lignin-derived specialty chemicals have reached stable operation, and UPM is ramping up sales of these products. 

"The Leuna Biorefinery is a transformative investment for UPM and an important milestone in our growth journey. Our high-performance renewable chemicals open new markets for UPM and new opportunities for our customers. Together with our renewable fuels, the Leuna Biorefinery forms a platform for profitable growth and shows the ambition and energy with which UPM innovates," said Massimo Reynaudo, President and CEO of UPM. 

The biochemicals will be used in everyday products, from clothing and packaging to cosmetics, construction materials and tires. Many of these are still made from fossil-based raw materials. Manufacturers and brands look for new ways to innovate and differentiate, and the Leuna plant gives them renewable alternatives with the required performance. At the same time, global warming underlines the need for continued de-fossilization, and a considerable share of consumers looks for products made from renewable materials. 

UPM's Leuna Biorefinery is also a milestone for Europe's bioeconomy. It shows that renewable carbon-based solutions can move beyond pilot projects into commercial-scale manufacturing, reducing dependence on imported fossil value chains and strengthening supply security. 

"Europe's competitiveness depends on creating new industries and scaling innovation. With Leuna, UPM turns Europe's strengths in science and engineering into a new growth business," said Reynaudo. 

The biorefinery uses beechwood from thinnings and sawmill residues, sourced within about 200 kilometers and unsuitable for higher-value uses such as timber or furniture. Using enzymatic hydrolysis, it breaks the biomass down into industrial sugars and lignin, renewable raw materials that can replace fossil-based inputs in chemicals production. The facility represents a total investment of €1,370 million. 

Please find the event media kit here: Media Kit - UPM Biorefinery Leuna Opening | UPM Biochemicals 

UPM inaugurates its Leuna biorefinery, opening a new industrial platform for renewable chemicals. (Picture: UPM)

For further information please contact: 
Martin Ledwon, Vice President, Marketing, Sustainability & Communications, UPM Next Generation Renewables, martin.ledwon@upm.com 

UPM, Media Relations  
Mon-Fri 9:00-16:00 EEST 
tel. +358 40 588 3284 
media@upm.com

UPM Next Generation Renewables
UPM Next Generation Renewables is a strategic growth business area of UPM, leading the industrial scale-up of the bioeconomy. We produce advanced, wood-based alternatives to fossil raw materials and enable customers to reduce emissions, meet sustainability targets and strengthen their competitive advantage. With pioneering biorefineries in Lappeenranta, Finland, and Leuna, Germany, we turn sustainably sourced wood and industry residues into renewable fuels and chemicals, such as renewable glycols, lignin-based functional fillers, renewable diesel and bio-naphtha. We accelerate the shift toward circular, fossil-free value chains and set new standards for sustainable materials.

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UPM 
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,100 people worldwide, with annual sales of approximately €9.7 billion. Our shares are listed on Nasdaq Helsinki Ltd. 
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