Pressure sensitive label materials supplier UPM Raflatac has decided to invest around €13m in a new coating line at its self-adhesive labelstock factory in Nowa Wies, Poland.
The investment will allow the company to increase the production capacity for its film labelstock business, as well as secure competitive growth in films in the long term.
The operations of the new assets are expected to start in the first quarter of 2015.
Further, the company plans to close an older film coating line in Tampere, Finland and its siliconizing line in Tervasaari. It also intends to close sheet labelstock coating operations and reduce capacity in sheets finishing in Polinya, Spain, in a bid to increase the productivity of its sheet labelstock business.
UPM Raflatac executive vice president Tapio Kolunsarka said the company is planning to increase filmic coating capacity in Nowa Wies as it enjoyed growth in Europe in recent years in its film business.
"The majority of the film market is in Central and Southern Europe and with this capacity we will be able to serve our customers in those market areas better in future," Kolunsarka added.
