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UPM Raflatac scales up its linerless business

Investor news 19.1.2021 10:00 EET

UPM Raflatac is strengthening its position in the fast-growing linerless labelstock market by scaling up its production capacity and building a new production line in Nowa Wieś, Poland.

Direct Thermal (DT) linerless labeling is a cost-efficient and sustainable alternative to traditional label stock. Driven by sustainability trends and the need for increased efficiency, linerless has quickly gained ground alongside traditional labeling technologies. Boosted by growing demand in end-uses such as grocery labeling, logistics and quick service restaurants, the DT linerless market has seen approximately 15 percent year-on-year growth in recent years.

“This investment in linerless is a natural continuation of our innovative product and technology development work and is a timely response to current market needs. Sustainability and efficiency benefits are significant as linerless brings up to a 40 percent reduction in material usage. This enables our end-users to improve their carbon footprint and reach their sustainability targets,” says Antti Jääskeläinen, Executive Vice President, UPM Raflatac.

Thanks to its in-house developed proprietary technology, world-leading product performance and existing global distribution network, UPM Raflatac is now ready to scale up its linerless production and take full advantage of the DT linerless opportunities available with converters, original equipment manufacturers (OEMs) and end users.

The EUR 13 million investment in Nowa Wieś, Poland includes a new linerless coating line and increased slitting and packing capacity increasing the company’s Direct Thermal (DT) Linerless annual production capacity by 100 million m2. The new production line is expected to be operational at the end of 2021.

Operations at the UPM Raflatac Wrocław, Poland label stock factory started in 2008 followed in 2012 by the nearby UPM Raflatac Nowa Wieś factory. Located in Western Poland, these two factories today employ over 700 people and form a significant UPM Raflatac label stock production hub.

For further information please contact:
Antti Jääskeläinen, Executive Vice President, UPM Raflatac. Media contacts coordinated by Heli Aalto, Senior Manager, Communications, UPM Raflatac, tel. +358 2041 50699 or heli.aalto@upm.com.

Photos for media: https://materialhub.upm.com/l/mNPq96TwpZrX

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UPM Raflatac
UPM Raflatac is leading in sustainable labeling through our innovative self-adhesive label materials and services. We offer high-quality paper and film label stock for branding and promotion, informational labels, and labels with functionality. We operate a global network of factories, distribution terminals and sales offices. Our company employs around 3,000 people and made sales of EUR 1.6 billion (USD 1.8 billion) in 2019. UPM Raflatac is part of UPM. Find out how we are labeling a smarter future beyond fossils at www.upmraflatac.com.

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UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 18,700 people worldwide and our annual sales are approximately EUR 10.2 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com

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