Helsinki (News release) -- 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.