The fate of Tako was in the headlines for almost 30 years. During that time, both machines were honorably modernized in very cramped spaces. Even the vault of the adjacent former bank might have been encountered during underground construction. During that period, the factory managed to achieve excellent results with high-quality white board products (e.g., cosmetics), and was very profitable.
Who owns Tako’s plot?
1 Like
Metsä Group owns the Tako factory property, including its land.
7 Likes
Valuing the property is very difficult when considering demolition costs and protection restrictions.
Metsäboard’s balance sheet equity is about 2000 ME. It can be quite safely said that the value of the Tako factory’s property + plot is almost insignificant to MB, even if it were tens of millions of euros.
But the location is good, and it will surely find a new use in the coming years. All other factories on the banks of Tammerkoski have also found a new use after the cessation of industrial activity.
4 Likes
UPM is building an industrial-scale biorefinery in Leuna, Germany, to convert solid wood into next-generation biochemicals. UPM Biochemicals accelerates the transition to a circular bioeconomy based on renewable raw materials.
UPM’s Biochemicals plant is preparing for start-up. Video published a few weeks ago.
18 Likes
Hopefully, the completion and ramp-up of Leuna will proceed well over the next two years. UPM has indeed been the most innovative and risk-diversifying forest company in Finland over the last 10-15 years. StoraEnso and Metsä have mostly taken the path of least resistance (cardboard), and that is reflected in shareholder value. They have lacked the courage or capital to innovate. For Metsä, of course, innovation is hindered by its very purpose of existence.
11 Likes
Holmen’s and Svenska Cellulosa’s results today. A bit soft, but dividends are up from last year and above analysts’ expectations 
The outlook will probably be published in the webcast as it wasn’t in the reports.
2 Likes
According to Blomma, in Q4, SCA moderately exceeded and Holmen slightly fell short of expectations regarding the results.
Swedish forest companies have not provided any guidance for years, and forward-looking statements in the reports were very scarce anyway. In webcasts, the outlook is certainly asked about, but we’ll see if answers are provided. In backward-looking (i.e., Q4) market comments, in my opinion, there were no major surprises relative to the expected sluggish overall picture.
Both kept the value of their forests roughly unchanged in their books, even though SCA reported that 3-year average prices had flexed slightly (mainly due to the decline in transaction prices over the last year). Holmen’s and SCA’s forests are, to my recollection, on average further north in Sweden than Stora Enso’s holdings. Thus, the conclusions regarding Stora Enso are not entirely straightforward, although I don’t believe Stora Enso will significantly adjust its forest balance sheet values this year either.
6 Likes
Two sides of the coin in Finnish pulp production in Uruguay:
4 Likes
There was nothing new in that “news story.” Locals are very fond of UPM’s investment, but in typical Finnish negative style, the Yle journalist does their best to highlight the factory’s downsides – and of course, the negativity had to start right in the headline. There is probably not a single thing in the world that everyone would like.
The story even managed to sneak in Stora Enso’s mussel case – instead, not a single word was said about, for example, UPM’s efforts to reduce the use of fossil raw materials in the chemical industry.
46 Likes
Excerpt from the story:
“The price tag for the pulp railway, completed last year, rose to three billion euros. It was paid for by Uruguayan taxpayers, according to the agreement made with UPM.”
Has this oversimplified things in the name of the special economic zone, à la Yle?
7 Likes
My thoughts on UPM as an investment target, the company’s current valuation, short-term risks, and potential earnings growth drivers. For me, the company’s expected return is just sufficient for it to end up in my dividend portfolio!
19 Likes
@Antti_Viljakainen solid preview. Forecasting the outlook is indeed exceptionally difficult. Europe’s recovery cannot be relied upon at all, and the first shots of the trade war were fired over the weekend. The company could make a forecast, but it’s another matter how things actually turn out. We are in dense fog.
8 Likes
This is a bit off-topic, but I was thinking the exact same thing as Kuponkiankka.
For example, the part: “The price tag of the pulp railway completed last year rose to three billion euros. It was paid for by Uruguayan taxpayers according to the agreement made with UPM.”
Yle’s journalist would perhaps have been happy if Finnish taxpayers had paid for the railway 
But tomorrow UPM’s results will be released, and comments, especially on the domestic wood market and perhaps even UPM’s actions in response to this, are extremely interesting.
16 Likes
Uruguay apparently announced its 2024 export figures last week.
The three Uruguayan pulp mills (Enso/Arauco Montes de Plata 1.3, UPM Fray Bentos 1.3 and UPM Paso de los Toros 2.1) generated over 2.5 billion dollars in sales revenue.
There was a 35% growth in dollars compared to the previous year, thanks to UPM, though lower pulp prices and not being at full capacity are limiting factors.
With a rough estimate, it would make sense if a total of about 3.3 million tons were delivered for 2.5 billion, making the price $700 per ton. The full delivery capacity is 4.1 million tons.
7 Likes
Just a reminder here too, so you don’t miss it… the live stream starts at 9:30.
3 Likes
UPM Raflatac has acquired British company Metamark to accelerate its growth in graphic film materials. UPM Raflatac’s current Graphics business, complemented by Metamark, will strengthen UPM Raflatac’s competitiveness, bring significant synergies, and make UPM Raflatac a major player in this fast-growing, high-value-added product category. The value of the acquisition is 146 million pounds (approximately 175 million euros).
Founded in 1992, Metamark manufactures and distributes graphic film materials. The product range consists of high-quality materials suitable for outdoor and indoor advertising and vehicle wraps. The company employs approximately 185 people and has a production facility in Lancaster, UK. The company’s turnover is approximately 65 million pounds, which will positively impact UPM Raflatac’s EBITDA margin, increasing it.
20 Likes
Q4 2024 in brief
-
Sales increased by 4% to EUR 2,632 (Q4 2023: 2,531) million
-
Comparable operating profit increased by 29% to EUR 418 (323) million, or 15.9% (12.8%) of sales
-
Operating cash flow was EUR 570 (456) million
-
UPM Biochemicals commenced commissioning and start-up of the biorefinery, with integrated commercial production to begin in the second half of 2025
-
UPM Fibres implemented a streamlined operating model in Finland to secure the profitability of Finnish operations
-
UPM Raflatac simplified its organization and decided to combine production from the Kaltenkirchen mill with other units
-
UPM Communication Paper closed fine paper machine 3 at the Nordland mill in Germany
-
UPM was listed as the only forest and paper industry company in the Dow Jones Global and European Indices (DJSI) for 2024-2025
-
The Board proposes a dividend of EUR 1.50 (1.50) per share for 2024 and initiates UPM’s first share buyback program, corresponding to approximately 1.1% of UPM’s shares
23 Likes
UPM Initiates Share Buyback Program
The Board of Directors of UPM-Kymmene Corporation has decided to initiate the acquisition of UPM’s own shares (“buyback program”) based on the authorization granted by the Annual General Meeting held on April 4, 2024. The key terms of the buyback program are:
-
The maximum number of shares to be acquired is 6,000,000 shares, representing approximately 1.1% of the total number of shares. A maximum of EUR 160 million can be used for the buyback program.
-
The shares will be acquired otherwise than in proportion to the shares held by shareholders, at the market price at the time of acquisition, in public trading on Nasdaq Helsinki Ltd, using the company’s distributable equity.
-
The shares are acquired to develop UPM’s capital structure by reducing equity.
-
The share buyback program will commence no earlier than February 10, 2025, and conclude no later than May 31, 2025. The acquired shares will be cancelled after the buyback program has ended.
32 Likes
UPM 2024 notes:
-Pulp sales revenue exceeded printing papers sales revenue for the first time in history
-Printing papers still have a large overcapacity. Deliveries 3263 (1000t), remaining capacity approximately 4300 (1000t) → paper machines will likely be shut down this year as well
-Addition: “CEO says wood costs in Finland are unsustainably high”
7 Likes