UPM Biochemicals has taken a significant step in strengthening its presence in the Korean market by selecting Dongsung Chemical as the exclusive distributor for its groundbreaking bio-monoethylene glycol (BioMEG) product, known as UPM BioPura. This strategic collaboration builds upon the partnership between the two companies established last year. It signifies a crucial move in the development of sustainable chemical solutions within the Korean chemical industry, ultimately contributing to greater sustainability and environmentally friendly practices.

In this collaborative endeavor, UPM gains access to the extensive and appealing Korean monoethylene glycol (MEG) market, which represents a substantial portion, roughly two-thirds, of the European Union's MEG market. This partnership extends the footprint of UPM's innovative bio-based product, facilitating its integration into the Korean market.

UPM Biochemicals has already embarked on numerous industry partnerships spanning various sectors, including automotive, fashion, and packaging. These partnerships are instrumental in the global transition from fossil-based materials to renewable resources. By expanding its cooperation with Dongsung Chemical, UPM further cements its position in the market, introducing a new category of high-value sustainable chemicals that are poised to revolutionize various customer segments within the Asian shoe and textile industries. The potential for innovative solutions in these markets represents a compelling opportunity.

Michael Duetsch, Vice President of Biochemicals at UPM, expressed the significance of broadening the partnership with Dongsung Chemical. He highlighted the collaborative effort to develop alternative solutions for diverse customer segments in the Asian shoe and textile markets.

ManWoo Lee, CEO of Dongsung Chemical, noted that their partnership with UPM plays a pivotal role in their ability to supply wood-derived biomass raw materials in Korea. By assisting partners in the development of environmentally friendly products using UPM's bio-monoethylene glycol, they are committed to reducing carbon emissions and enhancing ESG (Environmental, Social, and Governance) management. This partnership emphasizes their dedication to sustainable practices and environmentally conscious solutions.

UPM has demonstrated its commitment to the development of sustainable materials on a global scale. The company is investing EUR 1,180 million to construct the world's first industrial scale biorefinery in Leuna, Germany. In Leuna, UPM will engage in the conversion of sustainably sourced, certified hardwood into next generation biochemicals. These innovative products serve as a catalyst for the transition away from fossil-based materials, impacting various industries. The Leuna biorefinery plays a crucial role in UPM's growth strategy, with a focus on expanding its Biorefining sector. This sector is dedicated to scaling up the production of renewable fuels and chemicals derived from sustainable biomass, further emphasizing the company's commitment to sustainable practices and renewable resources.