UPM has reached an agreement with Avantium 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 recognized 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.”