UPM has reached an agreement to acquire the intellectual property associated with Avantium’s Ray Technology®, a process designed to produce bio-based mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) from plant-based sugars.

While the transaction is not considered financially material for UPM, the strategic significance lies in strengthening the company’s intellectual property portfolio and expanding future options for renewable chemical production.

Expanding UPM’s Bio-Based Chemicals Platform

The acquisition includes:

• Ray Technology® patent portfolio
• Related invention disclosures
• Bio-based glycol production technologies
• Intellectual property supporting biomass-to-glycol conversion

According to UPM, the acquisition broadens its protection across key pathways used to convert lignocellulosic biomass into renewable glycols.

Strengthening the European Bioeconomy

UPM believes the acquisition reinforces its position as a leader in industrial-scale renewable chemicals.

The company is currently commissioning its UPM Leuna biorefinery in Germany, which is expected to become the world’s first industrial-scale facility producing chemicals from sustainably sourced hardwood biomass.

The additional intellectual property strengthens UPM’s ability to develop future renewable chemical platforms and expand market opportunities.

Why MEG and MPG Matter

Mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) are important industrial chemicals used in:

• PET packaging
• polyester fibers
• textiles
• automotive applications
• coatings
• resins
• consumer products

Traditionally, these products are derived from fossil-based feedstocks.

Bio-based alternatives are increasingly attracting interest as industries seek lower-carbon raw materials.

Supporting UPM BioPET™ Growth

Harald Dialer, Chief Technology Officer at UPM and Executive Vice President of UPM Next Generation Renewables, said the acquisition expands UPM’s freedom to operate and strengthens future process flexibility.

He also highlighted the connection to 100% UPM BioPET™, the company’s renewable PET solution based on bio-derived feedstocks.

The transaction is expected to enhance UPM’s competitive position within premium renewable materials markets.

Industry Insight

The acquisition reflects a broader trend across the chemicals and packaging sectors.

Companies are increasingly investing in:

• bio-based chemicals
• renewable polymers
• biomass conversion technologies
• circular material solutions
• low-carbon manufacturing pathways

Control of intellectual property is becoming a critical competitive advantage as demand for sustainable materials continues to grow.

Partnership with Avantium

UPM noted that the acquisition aligns closely with the work of Avantium, a recognized innovator in renewable and circular polymer materials.

The transaction supports broader efforts to accelerate Europe’s industrial bioeconomy by expanding the range of commercially viable renewable chemical technologies available to the market.

Final Thought

The acquisition of Avantium’s Ray Technology® represents a strategic move by UPM to strengthen its renewable chemicals platform and secure greater flexibility in future biomass-to-glycol production. As bio-based materials become increasingly important across packaging, textiles, and industrial applications, the deal further reinforces UPM’s ambition to lead the transition toward a competitive and scalable European bioeconomy.

Last Updated on 08/06/2026 by Jota Machinery