UPM Rafsec to build RFID tag production facility in the USA

The leading RFID tag manufacturer UPM Rafsec is to build a new state-of-the-art RFID tag production facility in Fletcher, North Carolina. The investment further strengthens UPM Rafsec’s role as one of the most remarkable suppliers of RFID tags on a global scale and bolsters the company’s position in the North American market where demand for EPC (electronic product code) compliant RFID tags is growing dramatically.

The new factory, located in the vicinity of Raflatac’s US pressure sensitive labelstock production facility, will specialize in the production of high-quality UHF (ultra high frequency) tags. The investment is part of a USD 24 (EUR 19) million investment program which, when fully implemented, will enable an annual capacity of one billion RFID tags. The new factory will begin operations in the final quarter of 2005.

UPM Rafsec is known as the world’s number one EPC tag supplier, and since the establishment of an RFID sales and technical support centre in the USA in 2004, the company’s high-quality product range has received a very positive response. As part of UPM’s Labelstock Business, UPM Rafsec will develop its business with Raflatac and its label converter partners.

“This investment will reinforce UPM Rafsec’s leadership in the global RFID market. We estimate the demand for RFID tags to grow strongly especially in the US market,” comments Heikki Pikkarainen, President of UPM Labelstock Business. “At UPM Rafsec, we aim to be at the forefront of RFID market development by providing the market with high-quality RFID tag products in large quantities."

For more information, please contact:
Mr Christer Härkönen, Senior Vice President, UPM Rafsec, Tampere, Finland,
tel. +358 (0)204 168 300
Mr Jouko Lähepelto, Senior Vice President, Raflatac, Americas, Fletcher, NC, USA,
tel. + 1 828 651 4834

UPM
Corporate Communications
May 10, 2005


Notes to the Editors

UPM Rafsec develops and manufactures high-quality RFID (radio frequency identification) tags used in e.g. product identification and supply chain management. Established in 1997 UPM Rafsec is a world leading RFID tag manufacturer and a pioneer of the EPC (electronic product code) standard, specialized in high-quality, high-volume production. The company is headquartered in Tampere, Finland and it has a factory in Jyväskylä, Finland. In addition, UPM Rafsec has sales offices in the USA, Netherlands, Germany, China, Japan and Singapore.

Raflatac is one of the world’s leading suppliers of paper-based and filmic pressure sensitive labelstock, and it develops and manufactures label materials for product and information labelling. Raflatac has 2,200 employees and its turnover for 2004 was about EUR 800 million. The company has factories on five continents and a wide network of terminals and sales offices worldwide.

Raflatac and UPM Rafsec belong to UPM's Labelstock Business. UPM is one of the world’s leading producers of printing papers and the clear market leader in magazine papers. The Group's sales in 2004 were nearly EUR 10 billion, and it has over 33,000 employees. UPM's main products include printing papers, converting materials and wood products. The company has production plants in 16 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges.