UPM set to sell Finnish forest land if buyer found
Date: 31-Aug-01
Country: FINLAND
CEO Juha Niemela said the firm generally aimed to free up capital from areas with lower-than-average returns, but said UPM had no concrete plans to sell its forests. He said UPM's forest land had a book value of 6-7 billion markka ($917 million-$1.07 billion).
The firm's forests produce a return on capital of four to five percent, below UPM's long-term target for return on capital employed of at least 15 percent.
Niemela's remarks to a Nordea Bank forestry seminar came a few days after it was reported larger rival Stora Enso would be interested in selling its forests.
"UPM-Kymmene has also said that it would be ready to sell its forests if a suitable solution would be found," Niemela said.