Leuna, May 14, 2026
At the chemical industry site in Leuna, Finnish conglomerate UPM has commissioned a new biorefinery that will produce chemicals from wood. According to the company, approximately €1.3 billion has been invested in the project, which also received nearly €20 million in funding from the state of Saxony-Anhalt.
Major Investment and Production Targets
The facility is expected to produce around 220,000 tons of biochemicals from hardwood annually. UPM states that the first commercial wood-based chemicals have already been manufactured since late 2025. The biorefinery focuses on processing wood into industrially usable chemicals, which could be used, among other things, in fast-food packaging.
The plant's wood demand is enormous: it will require 500,000 cubic meters of wood per year. UPM emphasizes that the raw materials will be sourced sustainably, but environmental groups remain skeptical.