UPM: Biorefinery for Wood-Based Chemical Feedstocks Opens in Leuna

Finnish group UPM officially inaugurated its biorefinery in Leuna, Saxony-Anhalt, Germany, on 15 October 2026. The facility converts lignocellulosic biomass, particularly beech wood from forest thinning operations and sawmill residues, into bio-based chemical feedstocks. With an annual capacity of 220,000 tonnes, it is the world's largest facility of its kind, according to the company. The investment totals €1.37 billion.

Raw Materials and Production Process
The wood used as feedstock is sourced from within a radius of approximately 200 kilometres of the facility. According to UPM, the plant primarily processes wood from sustainably managed forests that is unsuitable for higher-value applications such as construction or furniture production. Through enzymatic hydrolysis, the lignocellulosic biomass is separated into industrial sugars and lignin. These serve as renewable feedstocks for the chemical industry and can replace fossil-based raw materials in certain applications.

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The production ramp-up has progressed further. According to UPM, enzymatic hydrolysis and the production of lignin-based speciality chemicals are now operating reliably. At the same time, the company is expanding sales of these products. The announcement does not specify when the facility is expected to reach its full annual production capacity.

Applications and Strategic Significance
The bio-based chemicals are intended for applications in textiles, packaging, cosmetics, construction materials and tyres. Renewable chemical feedstocks and lignin-based functional fillers are particularly relevant to the plastics and rubber industries. The facility is part of the "UPM Next Generation Renewables" business unit, which also includes renewable fuel production in Lappeenranta, Finland.

With the Leuna facility, UPM is expanding its industrial production of wood-based chemicals. The aim is to partially replace fossil-based raw materials and establish additional supply chains for renewable chemical feedstocks.

More information: www.upm.com, www.upmbiochemicals.com

UPM Biochemicals, Helsinki, Finland

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