Helsinki (News release) -- UPM on May 13 announces that it has reached an agreement with Avantium N.V. to acquire the intellectual property related to Avantium's Ray Technology®, a process for the production of bio-based mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) from plant-based sugars. The transaction comprises Avantium's patent portfolio and invention disclosures related to Ray Technology® and is for UPM not material in financial terms. The strategic value lies in the expansion of UPM's intellectual property position across the conversion of lignocellulosic biomass to bio-based glycols.

The acquisition strategically broadens the scope of UPM's IP portfolio safeguarding biomass-to-glycols conversion pathways and adds optionality for future process configurations as UPM continues to scale its bio-based chemicals business. It reinforces UPM's standalone position as the first company to bring lignocellulosic biomass-based chemicals production to industrial scale, currently being started up at the UPM Leuna biorefinery in Germany. The close alignment with Avantium, a recognised leader in renewable and circular polymer materials, supports the rapid development of a strong industrial bioeconomy in Europe, which can be expected to scale faster with multiple industrial options entering the market in parallel.

"This acquisition is a focused step that strategically expands the scope of our IP portfolio in bio-based glycols and strengthens our freedom to operate as we scale the industrial production of renewable chemicals," said Harald Dialer, Chief Technology Officer at UPM & Executive Vice President UPM Next Generation Renewables. "Combining Avantium's Ray Technology® patent estate with our own platform broadens our future process options and solidifies the premium market position we have obtained with our 100% UPM Bio PET ™. This transaction confirms UPM's role as a frontrunner in building a competitive European industrial bioeconomy."