UPM (United Paper Mills) is building the world’s first biorefinery in Leuna, Germany, to create the biochemicals industry of the future based on wood, which is renewable and a great alternative to oil. Andreas Meggendorfer, director of supply chain and sourcing at UPM Biochemicals, and Sonja Escherich, his supply chain counterpart, are responsible for sourcing, planning, and execution at UPM’s Biochemicals branch. UPM Biochemicals is part of the larger UPM operation, which manufactures renewable and recyclable products for various industries. Wood is a natural polymer that can be used in biofuels and bioproducts, such as UPM’s lignin-based Renewable Functional Fillers and renewable bio-monoethylene glycol.
The wood used to produce renewable biochemicals in the UPM biorefinery is responsibly sourced and fully traceable, meeting compliance requirements with new EU regulations. The team manages the entire logistical process, from sourcing wood to customer delivery, as an end-to-end integrated activity, simplifying and automating processes to ensure operational efficiency. The use of digitalization and automation lays the foundation for real-time traceability and the identification of potential issues for corrective action. UPM collaborates with logistics service providers to develop smoother processes, such as smart gate operations, to enhance efficiency at the loading bays in the Leuna Biorefinery yard.
Construction on the UPM Biorefinery began in 2021 with a significant investment, and production is expected to ramp up by the end of 2024, delivering a new range of beechwood-based bioproducts. The team’s engagement strategy with logistics service providers focuses on collaboration and new processes that are integrated, collaborative, and standardized for expansion to employees and business partners. UPM’s response to the growth in consumer demand for sustainable products made from responsibly sourced, renewable raw materials shows a commitment to a future beyond fossil fuels. True, results-driven collaboration is achieved when all stakeholders are involved in the process, as demonstrated by the UPM Biochemicals team’s efforts.
