UPM has announced that the expansion of their plywood mill in Estonia, which started way back in 2015, has now been completed. As well as expanding, the UPM Otepaa plywood mill has been coupled with the construction of a new bio boiler plant. In total, the investment is said to have cost the company over €40 million.

In recent years, UPM has enjoyed good growth and this has led to the expansion which will increase production capacity at the mill in question by nearly 100,000 cubic metres per year. Furthermore, the mill will become more efficient and they will be allowed to reduce their carbon dioxide by a whopping 85% thanks to the bio boiler plant. As well as new gluing and pressing lines, the expansion improved the overall technology within the complex such as in the veneer peeling and drying line. As production continues to grow, UPM has also had to increase soaking capacity and log sorting to meet demand. Within the new bio boiler plant, all of the thermal energy used by the company will be generated from by-products of all production. With this in mind, it means that all raw material within the Otepaa mill will be used as raw material for products or in the production of energy.

Currently, the mill in question is the largest plywood mill in Estonia and it has been in operation since 2000. In 2016, it produces for the construction industry but also for LNG carriers and vehicle floors. With not much business at home, around 95% of production leaves the country with most going to Central Europe. Thanks to the expansion, around 40 new employees will be working at the location bring the total up to around 250. In the Valgamaa County, the mill is quickly becoming one of the biggest industrial employers.