UPM has announced the acquisition of the intellectual property rights associated with Ray Technology®, a proprietary process developed by Avantium N.V. for producing bio-based mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) from renewable plant-based sugars.
While the transaction is not considered financially material for UPM, it represents a significant strategic investment in the company’s growing renewable chemicals business and long-term innovation roadmap.
The agreement includes Avantium’s patent portfolio, invention disclosures, and related intellectual property connected to Ray Technology®. By integrating these assets into its existing technology platform, UPM aims to expand its intellectual property position across biomass-to-glycols conversion pathways and enhance future process flexibility.
The acquisition further strengthens UPM’s leadership in the transition toward sustainable, fossil-free chemical production. As industries increasingly seek renewable alternatives to petrochemical-based products, bio-based glycols have emerged as important building blocks for packaging, textiles, automotive components, and a wide range of industrial applications.
According to UPM, the strategic value of the acquisition lies in broadening the company’s technological options for converting lignocellulosic biomass into high-value renewable chemicals. This additional intellectual property provides greater freedom to operate and develop future process configurations as market demand for bio-based materials continues to grow.
The move also reinforces UPM’s position as a pioneer in industrial-scale production of renewable chemicals. The company is currently commissioning its state-of-the-art biorefinery in Leuna, Germany, which is designed to convert sustainably sourced hardwood into bio-based chemicals that can replace fossil-derived raw materials in numerous applications.
By combining Avantium’s Ray Technology® patents with its own technology platform, UPM gains access to complementary innovations that can support the development of next-generation bio-based glycols and packaging materials. The acquisition is expected to enhance the company’s capabilities in producing renewable feedstocks for BioPET and other sustainable polymer solutions.
Harald Dialer, Chief Technology Officer at UPM and Executive Vice President of UPM Next Generation Renewables, emphasized the strategic importance of the agreement.
“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,” said Dialer. “Combining Avantium’s Ray Technology® patent estate with our own platform broadens our future process options and solidifies the premium market position we have obtained with our 100% UPM BioPET™. This transaction confirms UPM’s role as a frontrunner in building a competitive European industrial bioeconomy.”
The agreement also highlights the growing collaboration within Europe’s renewable materials sector. Avantium is widely recognized for its expertise in renewable and circular polymer technologies, and the transaction demonstrates the shared ambition of both companies to accelerate the development of sustainable industrial solutions.
As governments and industries worldwide intensify efforts to reduce carbon emissions and dependence on fossil resources, investments in renewable chemicals and bio-based materials are expected to play a vital role in shaping the future of manufacturing. UPM’s acquisition of Ray Technology® represents another important milestone in the advancement of Europe’s bioeconomy and the commercialization of sustainable chemical production at scale.