UPM is setting up a factory in Leuna that transforms wood into chemical building blocks for everyday products. Think bottles, fibers for clothing, rubber in tires, and coolants. The first shipment of beechwood has arrived, certification is in order, and start-up is getting closer. This will allow the factory to transition to oil-free plastics and rubber. This will allow PET bottles, textiles, and tires to have a lower carbon footprint.
From beechwood to glycol and lignin
At the factory, wood is first broken down into sugars and lignin. From the sugars, UPM produces bio-MEG and bio-MPG. MEG is a building block for PET and polyester, while MPG is used in applications such as antifreeze and coolants. The lignin stream is converted into functional fillers for rubber. This material can replace carbon black in tires and other applications. UPM markets these building blocks as BioPura for bio-MEG, BioMPG, and BioMotion for lignin-based fillers. This gives wood a second life as a molecule normally extracted from oil.
Benefits of fossil-free
Using MEG and MPG from wood reduces fossil inputs without overhauling the entire supply chain. These are drop-in building blocks that fit into existing processes for PET and polyester. This allows companies to reduce emissions in their supply chain without the added risk of production losses. For rubber producers, lignin-based fillers offer the opportunity for lower CO2 emissions per kilogram of compound and less dependence on oil-based additives. Regional sourcing of raw materials and products reduces logistical vulnerability and simplifies traceability.
Certification makes origin demonstrable
On June 17, 2025, UPM announced triple certification for Leuna. This includes ISCC PLUS and FSC and PEFC supply chain certification. This certifies that all wood comes from sustainably managed forests and that its provenance can be traced throughout the entire supply chain through independent audits. UPM uses certified hardwood from the region. For customers who also want to track emissions in their supply chain, this provides certainty regarding claims and procurement.
First delivery of beech wood gives the starting signal
The first shipment of beechwood arrived by rail in Leuna in early August. This marks the start of rail transport. The system is designed for high loading and rapid transshipment, which is essential for a stable supply chain within a continuous process. The factory is working towards integrated production in the second half of this year. The coming months will be dedicated to fine-tuning the lines and validating specifications with customers.
More info on upm.com
