UPM-Biofore-Magazine-1-2016-ENG

The Changshu investment increases capacity but also enhances the capabilities of UPM Raflatac to produce filmic label materials and high-end products.

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.

Jari Haavisto

“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

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