UPM Adhesive Materials invests in Malaysia factory to accelerate growth in Southeast Asia

Press Release 7.8.2025 9:00 EEST

UPM Adhesive Materials, formerly known as UPM Raflatac, is investing in a new, state-of-the-art coating line and other facility and material handling upgrades in its label material factory in Johor Bahru, Malaysia. This investment will significantly enhance the factory’s capabilities, quality and efficiency. Additionally, it will increase annual production capacity, enabling UPM Adhesive Materials to better serve its customers and accelerate growth in the Southeast Asian market.

This investment will also bring new filmic capabilities to the Johor Bahru factory. These new capabilities will allow UPM to meet the customer needs in the region with greater efficiency and reliability as well as distinguish itself in higher-value end-uses, such as durables and electronics.

Southeast Asia is currently one of the fastest growing markets for pressure-sensitive labels globally. With strong ambitions to grow in the region, this investment enables UPM Adhesive Materials to further enhance its presence and competitiveness in the local market.

“This major investment into our factory in Johor Bahru, Malaysia, illustrates our strong commitment and ambition to further develop our presence in the fast-growing and highly dynamic Southeast Asia region. With a new state-of-the-art coating line – combined with UPM’s strong technical expertise – we are able to create exceptional value for customers through improved quality, capabilities and services,” says Henning Krebs, Vice President, APAC, UPM Adhesive Materials.

The investment project kicked off in April 2025, and the new coating line is expected to be in operation around halfway through 2026.

For more information, please contact:
Henning Krebs, Vice President, APAC, UPM Adhesive Materials, media contacts coordinated by Christina Wang, Senior Manager, MSC, APAC, UPM Adhesive Materials, tel. +86 138 16371352, christina.wang@upmraflatac.com

UPM, Media relations
Mon-Fri 9:00–16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM Adhesive Materials
UPM Adhesive Materials provides high-performance, innovative self-adhesive products, including label materials, graphics solutions, and specialty tapes, as well as reliable services close to customers. We are one of UPM’s fastest-growing global businesses employing around 3,200 professionals. In 2024, our sales reached nearly €1.6 billion ($1.7 billion). Read more: adhesivematerials.upm.com

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UPM
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,800 people worldwide, with annual sales of approximately €10.3 billion. Our shares are listed on Nasdaq Helsinki Ltd.
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