UPM Expands Bio-Based Glycols Patent Portfolio with Acquisition of Avantium's Ray Technology® IP

UPM Kymmene Oyj announced on 13 May 2026 that it has entered into an agreement to acquire the intellectual property related to Avantium N.V.’s Ray Technology®. This technology encompasses a process for producing bio-based mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) derived from plant-based sugars.

The transaction includes Avantium’s patent portfolio and invention disclosures associated with Ray Technology®. While the deal is not material in financial terms for UPM, its strategic importance lies in expanding UPM’s intellectual property position in the conversion of lignocellulosic biomass into bio-based glycols.

By acquiring this IP, UPM broadens the scope of its portfolio that safeguards biomass-to-glycols conversion pathways. This expansion adds flexibility for future process configurations as UPM continues to scale its bio-based chemicals business. Currently, UPM is commissioning its industrial-scale production at the Leuna biorefinery in Germany, which is the first of its kind to produce lignocellulosic biomass-based chemicals at scale.

UPM’s Chief Technology Officer and Executive Vice President of UPM Next Generation Renewables, Harald Dialer, emphasized the strategic value of the acquisition: "This acquisition is a focused step that strategically expands the scope of our IP portfolio in bio-based glycols and strengthens our freedom to operate as we scale the industrial production of renewable chemicals."

Dialer further noted that combining Avantium’s Ray Technology® patent estate with UPM’s existing platform broadens future process options and reinforces the premium market position UPM has established with its 100% UPM Bio PET™ product. He added, "This transaction confirms UPM's role as a frontrunner in building a competitive European industrial bioeconomy."

The acquisition aligns closely with Avantium, a recognized leader in renewable and circular polymer materials, supporting the rapid development of a strong industrial bioeconomy in Europe. The presence of multiple industrial options entering the market simultaneously is expected to accelerate scaling.

UPM Next Generation Renewables focuses on creating sustainable, wood-based alternatives to fossil raw materials. Its product range includes renewable glycols, lignin-based functional fillers, renewable diesel, and naphtha. With biorefineries in Lappeenranta, Finland, and Leuna, Germany, UPM scales high-quality, low-carbon solutions for textiles, packaging, plastics, transport fuels, and other applications.

The company aims to enable customers to reduce emissions, improve environmental performance, and accelerate the transition to a circular bioeconomy. UPM Next Generation Renewables supports brands, converters, and industries worldwide in achieving climate and sustainability targets confidently, envisioning a future where renewable materials and sustainable production become the norm.

UPM is a global material solutions company with a portfolio spanning renewable fibres, advanced materials, decarbonization solutions, and communication papers. The company employs approximately 15,100 people worldwide and reported annual sales of approximately €9.7 billion. UPM’s shares are listed on Nasdaq Helsinki Ltd.