COMPETITIVE
ADVANTAGE AND
GROWTH THROUGH
INNOVATION
Jyrki Ovaska
EVP, Technology
What do we mean by innovations at UPM?
•
Target: to find & develop new business
opportunities and enhance existing businesses
•
Innovation is an idea that translates
into business value for UPM
– Business model
– Service concept
– Product / product enhancement
Current,
mature
businesses
Current
growth
businesses
UPM
Innovation
Management
– Business
– Technology & process
– New way of operating
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New
businesses
Innovation needs differ,
but it is a must in all UPM businesses
Mature
Growth
New
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Cost savings
New services
New business models
New products
Go-to-market concept
Cost savings
New products
New technologies
Application development
Commercialisation
Product innovations in new
and existing businesses
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Digital innovations offer a new opportunity
to transform existing businesses
Mature
Growth
New
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Cost savings
New services
New business models
New products
Go-to-market concept
Cost savings
New products
New technologies
Application development
Commercialisation
Digital
opportunities
Digital
opportunities
Data
Small & big
Traditional
& IoT
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Monetize
Extend
Optimise
Control
+
Technology
HW & SW
+
Analytics
=
Digitalisation
Digitalization and IoT
Why to be interested?
•
New competitive advantage
that is hard to copy
•
Better customer / user satisfaction
with lower costs to serve
•
Disrupt industry practices
and our own ways of working
•
Next steps in cost competitiveness
•
Frontrunners will define the rules
of the game
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Our planet has to provide increasingly
more wellbeing to more people
Population
growth
Urbanization
Climate
change
Resource
scarcity
Aging
population
Higher
living standards
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SUSTAINABLE BIOALTERNATIVES
& NEW BIOINNOVATIONS
Consumer brand owners continue to drive
renewables and green initiatives
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Wood is a unique and excellent raw material
for mitigation of global challenges
RENEWABLE
SUSTAINABLE
RECYCLABLE
VERSATILE
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NON-FOOD
NON-GMO
COMPETITIVE
LOW MARKET VOLATILITY
New business opportunities for UPM
Biochemicals
Biofuels
Biorefinery
Chemicals
• High volume products
• Economies of scale
• Drop-in applications
100 kt renewable diesel
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Biocomposites
Biofibrils
Lignin
• Auxiliary for
pharma R&D
• Industrial
Applications
• Performance
chemical
• New applications
Market entry
• New material
• End-user product
2 prod. sites
New separation technologies ensure
best overall value capture
Sugar-to-Chemical-Process
Wood-to-Sugar-Process
Glucose
Chemical A
€
Woody Biomass
Xylose
Chemical B
€
Lignin
€
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Partial overlap with fossil-based
value chains in chemicals
Petrochemical feedstocks
Feedstocks
Chemical
Building Blocks
Key Intermediates
C1: Syngas
Oil
C2: Ethylene
Gas
Refinery
C3: Propylene
Cracker
C4: Butadiene
Coal-toolefins
C6: Benzene
600 Mtons
C7: Toluene
Coal
Biomass
C8: Xylene
C5 Xylose
C6 Glucose
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10 Mtons
Final products
Diversified chemicals markets
offer many opportunities
PLASTICS
FOOD
COSMETICS
PAINTS
COATINGS
TYPICAL APPLICATIONS FOR BIOCHEMICALS
+++
ADHESIVES
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FIBERS
AGRICULTURE
INDUSTRIES
MANY OTHERS
Why UPM and biochemicals ?
Access to and management
of 2G-biomass
Biomass conversion
processes
Biomass
handling
- Debarking
- Saw mills
- Mechanical
pulping
Chemical
processes
- Kraft pulping
- Biodiesel
production
Bioenergy &
Infrastructure
- Biomass boilers
- CHP
- Water treatment
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Run sustainably large
industrial processes
REALITY: phenol in resins replaced
by renewable UPM biochemicals
Plywood
Dispersants
Modification
Process
PF Resins
Epoxides
Carbon Fibers
Laminates
Modification
Process
UPM Lignin
Insulation
Polyurethanes
Bioplastics
Pellets
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REALITY: UPM biomedicals enabling
development of new medical treatments
3D Cell Culturing Matrix for e.g. Cancer Research
cellulose based hydrogel
for life science applications
Membranes for e.g. Wound Care Applications
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Summary
•
Innovations accelerate transformation, drive
competitive advantage, top-line growth and new
business opportunities
•
UPM is in unique position to provide mitigating
solutions for global challenges
•
Biochemicals provide large market potential.
UPM is in good position to capture value through
focused growth investments
•
Major studies for novel technologies have been
going on for 5 years
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Redefining the industry
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