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UPM has signed a definitive agreement to form a graphic paper Joint Venture with Sappi, and the parties have secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent (LOI) on the transaction was signed on December 4, 2025. The planned Joint Venture will include the entire UPM Communication Papers business and Sappi’s graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries. “The definitive agreement is an important milestone in creating the planned Joint Venture that we see as a necessary step to secure long-term commitment and supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry,” said Massimo Reynaudo, President and CEO of UPM. Following this milestone, the parties will start planning to ensure operational readiness of the Joint Venture from day one. Until the closing of the intended Joint Venture according to the satisfaction of all legal and regulatory requirements, UPM Communication Papers and Sappi’s European graphic paper business will continue to operate as separate and independent companies. The Joint Venture is expected to create annual synergies estimated at about €100 million through asset and logistics optimizations, product portfolio rationalization, sourcing efficiency improvements and operational efficiencies. The establishment of the Joint Venture is intended to create a sustainable standalone business that ultimately will provide divestment flexibility for all shareholders. Three years after closing, with the Joint Venture expected to have completed the integration and realized the synergies, either shareholder may initiate a divestment of their shareholdings.

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In the UNESCO Spreewald Biosphere Reserve in Germany, a log corduroy road is currently being constructed using round timber to enable low-impact access to a wetland area. A Komatsu 951XC harvester equipped with an S172 head is being used for the project. Source: Timberbiz The timber road will provide the foundation for future forestry operations. The Spreewald region in Brandenburg, Germany, is one of Europe’s most distinctive natural landscapes. The region is characterized by a widely branched network of natural and man-made waterways as well as permanently wet, partly marshy soils. As a UNESCO Biosphere Reserve, the Spreewald places special demands on forestry operations, as the sensitive site conditions and the low load-bearing capacity of the soils make the use of conventional machinery considerably more difficult. Against this backdrop, a special forestry operation is currently being carried out: in a wetland area, a Komatsu 951XC harvester combined with an S172 head is building a road made of roundwood, known as a corduroy road. The planned road will be approximately 800 metres long and will serve as a stable foundation for further access to the area. The main challenge lies in the ground conditions. The subsoil is soft and unstable, which means machines cannot be used without preparatory measures. Building the corduroy road makes it possible to create the necessary infrastructure for the subsequent work steps. The aim is to enable adapted management of the area in the future. Timber harvesting will be carried out manually with chainsaws. A cable yarding system is planned for transporting the timber. At the end of the cable line, the felled trees will be processed by a harvester. A forwarder will then handle the onward transport of the logs from the stand. The construction of the corduroy road is therefore the first and decisive step in enabling a structured and soil-friendly operation in this challenging environment. This application demonstrates how practical solutions can be developed through the targeted use of modern forestry technology, even under extreme site conditions. This junction has been designed so that work can be carried out in parallel: On one side, the harvester processes the stems, while on the other side the cable yarder is positioned. The cable yarder handles timber extraction from the protected area of the biosphere reserve, where the use of machinery is not possible.

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Europe is experiencing rising demand for affordable housing, while the construction sector faces longer timelines, labour shortages and growing carbon requirements. Traditional building methods are struggling to keep pace, and scalable solutions that reduce environmental impact are urgently needed. Source: Timberbiz Modular timber construction offers a promising pathway, yet few examples exist at a scale that demonstrates true repeatability.  Xylino brings that vision into practice. Located in Almere, the Netherlands, this five-storey residential complex shows how an industrialised timber system can accelerate building delivery while significantly reducing environmental impact. The project takes its name from the Greek word for wood and represents the first large-scale modular housing development in the Netherlands built entirely from Laminated Veneer Lumber (LVL). Completed in early 2026 by property developer De Alliantie Ontwikkeling BV, the building provides 103 homes, including mid-market rental units, social housing apartments, and ground-level residences, supported by a semi-underground parking structure and a shared car-free courtyard. The building is assembled from 436 prefabricated wooden modules manufactured by geWOONhout. Each module is delivered to the construction site with integrated technical systems. Built entirely from LVL, the structural system consists of four corner columns and integrated floor and roof elements. The interlocking assembly creates a strong and precise structure without the need for a concrete core. Installation on site follows a sprint-based approach rather than a traditional linear schedule. Construction teams place eight to twelve modules per day, which corresponds to three to four complete apartments. A full residential block can be assembled in approximately four weeks. Digital design plays a key role in making the system scalable. By using a design platform, every component has a digital twin containing dimensions, specifications and end-of-life instructions. Each module includes a QR code linking to this data, supporting precise fabrication today and reuse or recycling in the future. The approach creates consistency in manufacturing while still allowing flexibility in layout and housing typologies. While cross-laminated timber (CLT) is common in timber construction, geWOONhout selected Kerto LVL as the main structural material to their concept. Kerto LVL products are manufactured by gluing together 3 mm thick veneers either all in the same direction or with 20 % laid crosswise, depending on the intended use of the product. Kerto LVL offers a high strength-to-weight ratio through, making it up to 50% more material-efficient than alternative mass timber products with similar performance. The high stiffness and dimensional precision of LVL ensure consistency in modular fabrication, where millimetre accuracy determines installation speed and overall quality. Different Kerto LVL products were selected for different applications in the structure. Kerto LVL S-beams measuring 5.2 metres serve as floor and roof beams, while shorter beams of 2.9 metres are used as studs and rim boards. The floor surfaces are constructed from 5.05-metre Kerto LVL Q-panels, and the load-bearing stability walls with a length of 3.3 meters are built from reglued 100-mm Kerto LVL Q-panels. CNC machining ensures tolerances within 0.5 millimetres, provides pre-cut service openings, and minimizes material waste. Kerto LVL is listed in Category 1 of the Dutch National Environmental Database (Nationale Milieudatabase, NMD). This verified environmental data supports transparent lifecycle assessments and simplifies compliance with Dutch regulations for sustainable building materials. Performance requirements for acoustic comfort and fire safety were key considerations. The entire load-bearing structure is wrapped with fire protection materials to meet regulatory standards for multi-storey housing. To achieve acoustic performance, additional mass was added to floors using olivine aggregate, a mineral that also captures CO₂. Acoustic decouplers between modules prevent sound transmission, and the full system has been tested to confirm compliance with residential performance thresholds. In addition, the construction is protected to R120, providing 120 minutes of resistance to structural failure, as required for new buildings exceeding 13 metres in height. Environmental considerations extend throughout the lifecycle. Lighter foundations reduced transportation emissions, smaller on-site cranes and PEFC-certified wood sourcing contribute to a significantly lower carbon footprint compared with conventional building methods. Modules are designed for disassembly, reuse and material recovery, supported by the integrated digital system. Operations on site are carried out with solar power, and the completed buildings include solar panels, high-performance insulation and rainwater harvesting. Low-carbon concrete is used only where necessary, such as in the semi-underground parking facility. Industrialised timber construction is advancing rapidly in the Netherlands and Belgium.

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