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“This is an
opportunity for
us to increase
our capacity by
an estimated
50 per cent and
expand into new
markets.”
Jari Haavisto,
Vice President
Greater China,
UPM Raflatac
U
PMRaflatac celebrated its 40th
anniversary and 15 successful
years in China by completing
a EUR 14million investment
in a new coating line at the Changshu self-
adhesive label stock factory. Machinery was
also upgraded both in Changshu and at the
Johor Bahru plant inMalaysia.
“This is an opportunity for us to increase
our capacity by an estimated 50 per cent
and at the same time increase our quality
and bring a wider range of label products to
China,” says
Jari Haavisto
, UPMRaflatac’s
Vice President for Greater China.
The demand for self-adhesive label
products is growing rapidly in China due to
the increasing consumption of fast-moving
consumer goods, growing e-business, rising
use of automated product labelling and
the expanding industrial use of pressure-
sensitive adhesive labels.
The Changshu investment not only
increases capacity, but also enhances the
capabilities of UPMRaflatac to produce
filmic label materials, high-end products
featuring UV-acrylic adhesives, other special
products and label stock tailored to customer
requirements. The machinery upgrades and
increased automation in slitting have further
increased output and raised finishing to the
higher level required by the rising demand for
quality film-based products.
Many benefits from the PM3 investment
The new paper machine at UPM’s Changshu
mill also gives UPMRaflatac an opportunity
to purchase high-quality release liner locally
in China instead of relying on imported paper.
“It’s a major change for the market with
UPMnow starting release liner production
here in China. We can benefit from that, as
will the whole industry in China, through
shorter lead times and no customs handling.
Release liner is not easy to produce but UPM
is known for its high quality. Modern labelling
machines are also very sensitive and require
high-quality release liner,” says Haavisto.
UPMRaflatac’s UV-acrylic adhesives
mark China’s first large-scale introduction
of high-performance alternatives to solvent-
based adhesives with increased resistance
to exposures such as oils, chemicals and
heat. They meet a range of needs inmarket
segments including durable goods, home care,
personal care and RFID. Customers now also
have the option of making positive choices for
sustainability by choosing certified FSC® and
PEFC™ label grades.
UPMRaflatac’s Changshu factory exports
about 50 per cent of its output to Asia-Pacific
markets. With the investment completed,
the company is well prepared to meet an
expected increase in volume demand.
“Domestic consumption is increasing
rapidly in China. Local brands are now
growing faster than international brands,
and local brand owners like to decorate
their products. The demand for packaged
food is increasing in China, and there is also
increased interest in the safety of the package
and packaging materials. All these trends
support our business. We are already the
best suppliers in China in terms of quality,
logistical lead times, service and sustainable
label solutions. I believe this makes us the
best choice of partner for label converters and
brand owners today and for the years ahead,”
says Haavisto.
The Changshu investment
increases capacity but also
enhances the capabilities of
UPM Raflatac to produce filmic
label materials and high-end
products.
Jari Haavisto