UPM expands advanced label material capacity in the USA

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UPM's subsidiary UPM Adhesive Materials, formerly known as Raflatac, plans to increase its capacities for advanced labels. The company announced it would implement new proprietary coating technology at its Mills River factory in North Carolina, USA, which would significantly raise production.

The Mills River site produces pressure-sensitive label materials under the Raflatac brand. In addition to advanced label materials, it also serves its customers with paper and film label materials and says it will continue doing so. Advanced label materials are used in markets such as wine and spirits, industrial, pharmaceuticals, and postal. The Mills Rivers factory employs 300 people.

UPM Adhesive Materials is currently taking steps towards strengthening its presence in faster growing regions. "[This investment] will bring advanced label production closer to our customers in the Americas, enabling us to service them more effectively,” said Brinder Gill, Senior Vice President, Americas, UPM Adhesive Materials. The company said it was also investing in its Johor Bahru mill in Malaysia to strengthen the asset platform in Southeast Asia. Furthermore, UPM Adhesive Materials recently acquired UK-based company Metamark, a manufacturer of graphics solutions with one site in Lancaster.

In the USA, the company runs another two mills in Dixon, Illinois, which employs 100 people, and in Fletcher, which has a workforce of 76. UPM Adhesive Materials is a producer of self-adhesive paper and film products such as label materials, graphics solutions and specialty tapes. The company describes itself as one of UPM’s fastest-growing global businesses. In 2024, its sales revenues reached nearly €1.6bn and the company has recently reported growing year-on-year sales for the first half of 2025.

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