UPM: Acquisition of Avantium technology for bio-MEG and bio-MPG

Finnish group UPM is acquiring the Ray Technology process for producing bio-based monoethylene glycol (MEG) and monopropylene glycol (MPG) from Dutch chemical company Avantium.

According to the press release, the transaction includes Avantium’s related patent portfolio as well as invention disclosures connected with the technology. Among other things, the process enables the production of MEG, a PET precursor, from plant-based sugars. According to Avantium, the financial volume of the agreement amounts to around EUR 2.7 million.

Advert

With this acquisition, UPM is strategically expanding its IP portfolio and securing additional options for the further development of its bio-based chemicals business. According to the company, UPM is the first company to realize the production of chemicals based on lignocellulosic biomass on an industrial scale. According to the latest release, the corresponding production at the biorefinery at UPM’s German site in Leuna is currently being commissioned.

UPM manager Harald Dialer said: “Combining Avantium’s Ray Technology patent portfolio with our own platform expands our future process options and strengthens the premium market position we have achieved with our 100% UPM Bio PET. This transaction confirms UPM’s role as a pioneer in building a competitive European industrial bioeconomy.”

In the UPM Next Generation Renewables division, the group develops sustainable, wood-based alternatives to fossil raw materials, ranging from renewable glycols and functional lignin-based fillers to renewable diesel and naphtha. In addition to Leuna, UPM operates another biorefinery in Lappeenranta, Finland. In total, UPM employs around 15,000 people worldwide and generates annual sales of about EUR 9.7 billion.

Avantium, listed on the Amsterdam and Brussels stock exchanges, is regarded as a leading technology company in the field of renewable chemistry. Its focus is on developing new processes for producing plant-based plastics. The company operates facilities at the Dutch sites of Delfzijl and Geleen near Sittard.

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

UPM Biochemicals, Helsinki, Finnland

back to news list