Raflatac plans to restructure its operations in Europe

Raflatac, part of the UPM-Kymmene Corporation's Converting Division, starts negotiations to streamline its operations in Europe. The company plans to concentrate the production of self-adhesive laminate in the factories in Finland (Tampere), France, Great Britain and Spain. The restructuring will not affect Raflatac's global sales and distribution network.

As part of a program to improve its profitability, Raflatac is planning to close its Hirschhorn factory in Germany this year and its Jyväskylä factory in Finland gradually. The Hirschhorn and Jyväskylä factories both employ 70 people. The Jyväskylä factory will in 2002-2003 switch over to the production of Rafsec's RFID transponders. Raflatac's subsidiary Rafsec will need new workforce as it expands its operations.

According to the plan, sheeting activities will cease at the Tampere factory this year and the production of hot melt laminate will be transferred mainly to France. The Tampere factory will concentrate on special and synthetic products. Raflatac is planning investments worth 10 million EUR in the Tampere factory, which means an increased need of workforce. The reduction of personnel in Tampere will be carried out mostly by pension plans.

Based on the planned measures, Raflatac aims at considerable savings in the coming years. The savings will be achieved through improved productivity of fixed assets and streamlining of operations through concentration. Raflatac has in recent years developed and expanded its operations. The company opened a new factory in the US last year.

Raflatac in brief

One of the world's leading suppliers of paper-based and synthetic self-adhesive labelstock, Raflatac develops and manufactures self-adhesive laminate for a wide variety of needs in product and information labelling. Raflatac has almost 2000 employees and its turnover in 2000 was EUR 630 million.

Raflatac supplies self-adhesive reelstock to converters and printers, and sheetstock through paper merchants. The company has factories in Finland, France, the UK, Germany, Spain, Malaysia, South Africa, China, Australia and the USA, and a wide network of terminals and sales offices throughout the world.

For further information, please contact

Juhani Strömberg, CEO of the Raflatac Group
Tel. +358 204 16 7800, +358 40 545 5288

Mika Sillanpää, Vice President, Europe
Tel. +358 204 16 8182, +358 40 772 3929

UPM-Kymmene Corporation
Raflatac/Communications
10 January 2002