UPM Rafsec creates pioneering solution for automatically tagging pallets with UHF tags for Nestlé

UPM Rafsec, a leading RFID tag manufacturer and member of UPM Group, announces today its successful participation in METRO Group’s RFID roll-out and in creating the first automatic pallet labeling device for UHF RFID tags for Nestlé. This innovative solution facilitated by Nestlé was created in collaboration with SATO Deutschland GmbH, a leading manufacturer of label and barcode printers and a specialist in data collection systems (DCS) and RFID.

METRO Group, one of Europe's most progressive retailers, started its RFID roll-out in the first week of November. The mandate means that since November, 20 of METRO Group’s leading suppliers deliver many of their product pallets with RFID tags.

"Through its partner network UPM Rafsec has been able to supply the tags utilized by majority of the 20 METRO Group suppliers," comments Samuli Strömberg, Business Development Director at UPM Rafsec. "One big factor of success is that UPM Rafsec’s product development team was able to participate in the first site tests and gain precious application knowledge to support its solutions provider partners. The UPM Rafsec Flag Tag we supply with our partners to the FMCG (fast moving consumer goods) industry is a one-of-a-kind, printer friendly solution for tagging all pallets with just one type of tag. It is the only shipping label compatible tagging solution available on the market today which functions virtually for all applications.”

Nestlé is participating in METRO Group’s broad-based RFID initiative and is now in a position to automatically label pallets of goods intended for METRO Group with fully functional UHF RFID tags, as one of the retailer’s first suppliers. UPM Rafsec supported SATO’s specialists that have succeeded in creating, after thoroughly intensive practical tests at Nestlé distribution centers in Lüdinghausen, the first functional solution for UHF RFID labeling. The new automatic labeling unit is due to go into operation at the Nestlé distribution center in Rangsdorf in January 2005.

For many years, UPM Rafsec is playing an important role in RFID industry as a pioneer in the area of large-scale implementation of RFID technology. By supporting its partners in developing the new automatic labeling solutions UPM Rafsec has given a significant contribution to the progress and innovation within the entire retail segment. The Flag Tag concept has been filed for patents by UPM Rafsec.

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About UPM Rafsec
UPM Rafsec is a world leading RFID tag manufacturer and pioneer of the ePC standard, specialized in low-cost and high-volume production. Headquartered in Tampere (Finland), in the heart of the most famous center of excellence for wireless technology worldwide, the company combines leading edge know-how in the fields of wireless and paper technology.
With its multi-disciplinary expertise in the fields of RF technology, materials and production processes, the company has the broadest and most comprehensive in-house know-how and capabilities for RFID tag design and manufacturing.
UPM Rafsec is a part of UPM, a EUR 10 billion company listed on the New York and Helsinki stock exchanges and one of the world’s largest paper producers, employing 34,000 people worldwide.

For more information, please contact:
Mr Timo Lindström, President, UPM Rafsec, tel. +358 204 168 133


UPM Rafsec
Communications
December 14, 2004