What happened? UPM-Kymmene ''has decided to initiate a strategic review of UPM Plywood business area to assess options for maximizing the long-term potential of the Plywood business in an evolving market environment. The strategic review includes a range of possibilities, including a potential separation from UPM through for example a divestment, partial demerger or initial public offering. The aim is to determine the best path forward for the Plywood business, while also benefiting the value creation for UPM''s shareholders '' BNPP Exane View: This is an interesting move by UPM and the first potential disposal since CEO Massimo Reynaudo took over leadership at the start of 2024. In itself the Plywood segment has accounted for just 4% of group sales and EBITDA over the last five years, on average. In recent quarters the segment has been impacted by worker strikes, though these are now resolved. Given the relatively small scale of this business in the group context any disposal or spin is unlikely to be material. However, it would help to simplify the portfolio for investors and could potentially presage further actions to consolidate activities into fewer, larger, areas. Overall though, given there have been no big hints on wider group transformation such a possibility is speculative. We therefore read today''s news as neutral/ immaterial to the group share price.