UPM, Outokumpu Technology and Finnish Industry Investment have established a joint venture to produce high quality RFID (radio frequency identification) antennas as well as to develop their production technologies. The joint venture is the world's first mass producer to specialise in RFID antennas aiming at global markets.
UPM's shareholding in the company is 38 per cent. Both Outokumpu Technology and Finnish Industry Investment Ltd have a 28 per cent shareholding in the company while the management holds the remaining 6 per cent. Antenna production is scheduled to start in the autumn of 2005.
"The demand for RFID tags grows strongly globally. Until now, there has not been a strong enough antenna manufacturer to respond to the growing demand. The operative model of the new company is based on combining the know-how of UPM and Outokumpu Technology as well as the strong resources of the owner companies," says Heikki Sara, Executive Vice President, Strategic Development of UPM.
UPM and Outokumpu have a long cooperation in developing production technologies for RFID antennas. UPM has several years experience of producing RFID tags at UPM Rafsec. Outokumpu Technology will bring significant know-how in metallurgy and technology to the new company. Finnish Industry Investment Ltd is a government-owned investment company engaging in investment of venture capital funds.
RFID antenna is an strategic component in tags based on radio frequency identification. Antennas transmit information between the reader and the tag on radio waves. RFID systems are used for product identification and stock control among other things.
For more information, please contact:Mr Heikki Sara, Executive Vice President, Strategic Development, UPM, tel. +358 204 15 0040 (between 9:00 and 12:00 Finnish time)Mr Vesa Sorri, Technology Director, UPM New Ventures, tel. +358 400 463 833
UPMCorporate CommunicationsApril 12, 2005