The label materials specialist said that merging its existing Graphics business with Belgian company Grafityp would strengthen its overall competitive positioning in this product segment, expand its portfolio, and give access to high-value new technologies.
Grafityp develops and manufactures self-adhesive graphics products and its portfolio consists of colour films, print films for large-format colour printing, laminates, and wrapping films for various end-uses.
The company has approximately 100 staff and a manufacturing site in Houthalen, Belgium, plus a distribution centre in the UK.
“We are committed to become a full product and service provider in graphics solutions. Merging Grafityp with UPM Graphics business accelerates our growth,” said Timo Kekki, senior vice president of UPM Raflatac Films and Specials.
“Grafityp is a leading, innovative graphics company with lot of know-how. We look forward to growing together and offering an even stronger product portfolio to our current and new customers.”
Herman Bosman, owner of Grafityp, added: “This acquisition presents significant opportunities to accelerate growth and enhance business value through the expansion of our customer base, production facilities and innovative product offering.
“The UPM Group shares our commitment to human values and sustainability. The complementary nature of our two organisations is truly remarkable, and we anticipate considerable synergies arising from this partnership.
“This agreement accelerates our ambitious growth plans. We eagerly anticipate the promising future this collaboration will bring.”
The purchase price and other transaction details have not been disclosed.
Alongside the announcement today (23 July), Finnish parent company UPM also released its results for Q2 and H1 2024.
It said its sales totalled €2.55bn (£2.15bn) in Q2, and €5.19bn in H1 – down 3% on H1 2023.
Comparable EBIT increased by 60% to €182m in Q2, and by 10% to €515m in H1.
Massimo Reynaudo, president and CEO, said: “In Q2, our comparable EBIT increased by 60% on last year, in line with our expectations. The continued improvement was sustained by a moderate recovery in our product markets as well as a greater contribution from the UPM Paso de los Toros pulp mill in Uruguay.
“Our Q2 performance was held back by an exceptional amount of maintenance at our pulp mills and nuclear power plant units. The shutdowns were successful, and our assets are now in an excellent position to serve our customers in the second half of the year, operating at full capacity.”
Looking ahead, UPM said its full-year 2024 comparable EBIT is expected to increase from 2023, supported by higher delivery volumes, the ramp-up and optimisation of the UPM Paso de los Toros pulp mill, and lower fixed costs.
Demand for many UPM products is expected to gradually improve as the destocking seen in 2023 is over. The market conditions for renewable fuels are expected to be weaker than last year.
The business said it was continuing to manage margins and taking actions to reduce variable and fixed costs.
UPM further stated: “In H2 2024, comparable EBIT is expected to be higher than in H1 2024. This improvement is expected to come especially from UPM Fibres, with the full pulp capacity available and pulp price levels starting at a higher level than at the start of the year.
“There are no major maintenance shutdowns scheduled for the company in H2 2024, whereas H1 2024 was impacted by unusually high maintenance activity and political strikes in Finland. The timing of the annual energy-related refunds is expected to support the result in Q4.”
