UPM has completed withdrawal of its businesses from Russia by selling all its Russian operations, including the Chudovo plywood mill, to Gungnir Wooden Products Trading. The parties have agreed not to disclose the details of the transaction.
Following Russia’s war of aggression in Ukraine, UPM announced in March 2022 suspension of its business activities in Russia, including deliveries, wood procurement and the Chudovo plywood mill.
https://www.upm.com/about-us/for-media/releases/2023/04/upm-has-sold-all-its-business-operations-in-russia-to-gungnir-wooden-products-trading/
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HEINZEL GROUP announces its performance for the year 2023, showcasing resilience in a complex market environment. The company reports a healthy €135,0 million of Operating Cash Flow and a simultaneous 6% reduction in CO2 emissions compared to the previous year, underscoring its dedication to both economic performance and sustainability. HEINZEL GROUP achieved net sales of €2,214.9 million in 2023, with an EBITDA of €116.5 million. Notable successes of 2023 include the startup of unbleached pulp production at Heinzel Pöls as well as the preparation of the integration of Steyrermühl operations acquired from UPM in Austria. Sebastian Heinzel, CEO of HEINZEL GROUP, commented, "In 2023 we have demonstrated resilience in challenging market conditions, especially in the containerboard segment, and we have laid the groundworks for future successes.” The Steyrermühl mill has become part of HEINZEL GROUP on January 1, 2024. The rebuilding of PM6 machine there remains well on track, with production of kraft papers slated to commence in May 2024.
The company reported operating income of $102 million in the quarter, compared to $406 million in the second quarter of 2021. The $304 million variation reflects lower realized prices and shipments in wood products ($342 million), partly offset by higher realized prices in the pulp and paper segments ($32 million), and higher volume in market pulp ($9 million). The wood products segment generated operating income of $64 million in the quarter, a decrease of $341 million from the previous quarter. With benchmark lumber prices falling from the record highs attained in May, the average transaction price fell to $573 per thousand board feet, a $583 per thousand board feet, or 50%, decrease from the previous quarter. The company generated operating income of $46 million in the market pulp segment, an increase of $16 million from the previous quarter. The average transaction price increased by $39 per metric ton, or 5%, to $826 per metric ton, with gains in all grades. The tissue segment incurred an operating loss of $9 million in the quarter, $2 million wider than the previous quarter. The average transaction price decreased by $60 per short ton, or 3%, due to unfavorable product mix, while delivered costs decreased by $109 per short ton, or 5%, with less downtime than in the previous quarter. The company generated an operating income of $16 million in the paper segment in the quarter, an increase of $23 million from the previous quarter. The average transaction price rose by $54 per metric ton, or 9%, with price recovery reflecting tightening global markets.
UPM concluded the sale of its hydro power facilities in Steyrermühl, Austria to Energie AG, an energy infrastructure company located in Upper Austria on 31 July 2017. The transaction was announced in March 2017.