UPM announced it has acquired the intellectual property related to Ray Technology from Avantium, expanding its portfolio of bio-based glycols technologies and strengthening its position in renewable chemicals production.
The agreement includes Avantium’s patent portfolio and invention disclosures related to Ray Technology, a process designed to produce bio-based monoethylene glycol (MEG) and monopropylene glycol (MPG) from plant-based sugars. While the transaction is not considered financially material for UPM, the company emphasized the strategic importance of broadening its intellectual property footprint across lignocellulosic biomass-to-glycols conversion pathways.
UPM said the acquisition increases optionality for future process configurations as it scales its bio-based chemicals business. The deal also reinforces UPM’s position as the first company bringing lignocellulosic biomass-based chemicals production to industrial scale through the startup of the UPM Leuna biorefinery in Germany.
The company noted that the collaboration with Avantium, recognized for its work in renewable and circular polymer materials, supports the advancement of Europe’s industrial bioeconomy by enabling multiple industrial-scale renewable materials solutions to enter the market simultaneously.
UPM highlighted that the acquisition complements its existing platform and strengthens the market positioning of its 100% UPM Bio PET™ offering. The company said the transaction supports its long-term strategy of building renewable alternatives to fossil-based raw materials for industries including packaging, textiles, plastics, and transport fuels.
UPM Next Generation Renewables develops wood-based alternatives to fossil raw materials, including renewable glycols, lignin-based fillers, renewable diesel, and naphtha. The business operates biorefineries in Lappeenranta, Finland, and Leuna, Germany, targeting lower-carbon solutions for industrial applications.
UPM employs approximately 15,100 people globally and reported annual sales of approximately €9.7 billion. The company’s shares are listed on Nasdaq Helsinki.
KEY QUOTES:
“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. 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.”
Harald Dialer, Chief Technology Officer at UPM & Executive Vice President UPM Next Generation Renewables
