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UPM Biochemicals and Domtar sign lignin supply agreement

UPM Biochemicals and Domtar sign lignin supply agreement

UPM and the US-based pulp and paper producer Domtar Paper Company have signed an agreement for UPM to acquire the total annual kraft lignin production of Domtar’s Plymouth Mill in North Carolina, USA as of January 2021. This step enables UPM to expand its role in the growing lignin business and different application segments.

Following the agreement, UPM will increase its supply of kraft lignin by more than 20,000 metric tonnes annually. Part of the supply will be used to complement the existing UPM BioPiva product family. UPM lignin products will be sold globally through UPM’s sales network and are supported by strong technical expertise.

“We are very pleased to have agreed this new supply agreement with Domtar. It enables us to expand our lignin business in the growing biochemicals market before the start-up of our Biorefinery in Leuna, Germany,” says Juuso Konttinen, Vice President, UPM Biochemicals.

Kraft lignin products such as UPM BioPiva are used as a renewable alternative to fossil-based products in a growing range of applications, such as lignin-based phenolic resins. They offer high technical performance, with a considerably improved environmental footprint.

UPM is currently building an industrial scale biochemicals refinery in Leuna, Germany, to produce biobased Monoethylene Glycol (BioMEG), Monopropylene Glycol (BioMPG) and industrial sugars as well as renewable functional fillers and lignin from sustainably sourced hardwood.

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