Paper

UPM has not ruled out alternatives such as consolidation, according to reports in the Finnish press.

News agency Startel has reported that the chief executive of the magazine, newsprint and fine papers manufacturer has said he is interested in consolidation.

Jussi Pesonen said the potential consolidation could help make the company better in the future.

He added that a combined company could also help increase profitability, which is needed in a sector that has struggled with overcapacity in the market place.

Earlier this year, speculation grew on whether UPM could merge with paper manufacturer Stora Enso (PrintWeek, 13 March 2008).

At the time, it was understood that neither company had commented on the speculation internally and no official comment was made.

However, some believe a merger between Stora Enso and UPM-Kymmene would struggle to get European competition commission approval.