UPM’s Raflatac to double its filmic pressure sensitive labelstock capacity in Europe

Raflatac, a world-leading manufacturer of pressure sensitive labelstock, is to double the filmic production capacity of its Tampere factory in Finland. The investment announced today is part of a long-term investment programme in Raflatac, one of UPM’s core businesses, and further strengthens Raflatac’s position in the growing filmic labelstock market.

The Tampere-based film lamination line will be completely modernized. When operational it will enable the production of thinner films for the various demanding needs of brand owners in the personal care and beverage industries among others. The design of the new coating line is founded on proprietary technology with a special emphasis on cleanliness to meet today’s market demand for high-quality filmic pressure sensitive materials. The new line is scheduled for start-up in the third quarter of 2006.

“Raflatac has been especially active this year across several fronts worldwide. A strong development programme is being implemented in Europe, the USA and China. This newly announced full modernization will further solidify our film supply platform in Europe,” says Heikki Pikkarainen, President of UPM Labelstock Business.

“This is a significant investment in Raflatac’s films business and, in accordance with our strategy, it will double our production capacity for filmic materials in Europe. The investment shows our commitment to being an equally strong supplier of high-quality films as we are already of papers,” says Thomas Rohweder, Head of Raflatac Europe.

For further information, please contact:
Mr Heikki Pikkarainen, President, UPM Labelstock Business, tel. +358 204 16 7800, mobile +358 40 760 5758

Mr Thomas Rohweder, Senior Vice President, Raflatac Europe, tel. +358 400 626201

Raflatac
Communications
September 22, 2005

Raflatac in brief
One of the world’s leading suppliers of paper-based and filmic pressure sensitive labelstock, Raflatac develops and manufactures label materials for product and information labelling. Raflatac has 2,200 employees and its turnover for 2004 was approximately EUR 800 million. The company has factories on five continents and a wide network of terminals and sales offices worldwide. Raflatac is part of the UPM Group, one of the world’s leading forest products companies. UPM shares are listed on the Helsinki and New York stock exchanges.