Oldham said that 2009 had turned out to be a better year than expected, particularly in light of the challenges manufacturers faced from exchange rates and reduced demand.

The group recently rebranded itself under the tagline 'The Biofore Company' as part of a campaign to highlight its "integration of bio and forest industries".

UPM now has biomass boilers installed in nearly all of its mills, including its UK-based Caledonian and Shotton sites in Scotland and Wales respectively. Oldham said: "Bio-diesel and fuels are a huge opportunity. The forest industry is one of the most sustainable industries around; its products are recyclable and biodegradable."

However, he added that the print and paper sector had been unsuccessful in marketing itself as a sustainable industry.

At the company's AGM, held yesterday (22 March), president and chief executive Jussi Pesonen told attendees that demand for paper was recovering in the company's main markets.

"Continuous improvement and cost efficiency continue to be part of our everyday operations, but strategic initiatives and building on UPM's strengths will be more our focus," he said.

Over the past year, restructuring at the company has taken the form of temporary production cuts across some sites.
However, Pesonen said the business did not expect any major structural changes in the foreseeable future.

UPM's turnover decreased by 18% to €7.7bn (£6.9bn) in 2009, which the business said was mainly due to the impact of the "severe global recession".

Oldham explained that consolidation was key to boosting profitability for the industry. However, he said he doubted whether this would take the form of an acquisition for UPM.

He said: "Who knows what shape it will take. No one has very deep pockets at the moment."