UPM Adhesive Materials, formerly known as UPM Raflatac, has invested in expanding its label material factory in Johor Bahru, Malaysia, adding a new coating line alongside facility and material handling upgrades.
The project, which began in April 2025, is designed to expand production capacity, enhance quality and efficiency, and strengthen the company’s position in the fast-growing Southeast Asian market. The new coating line is expected to be operational by mid-2026.
Expanding filmic capabilities
The investment will also bring new filmic capabilities to the Johor Bahru site, enabling UPM Adhesive Materials to better meet regional customer needs and diversify into higher-value applications such as durables and electronics.
“Southeast Asia is one of the fastest growing markets for pressure-sensitive labels globally, and this investment demonstrates our strong commitment to the region,” said Henning Krebs, vice president, APAC, UPM Adhesive Materials. “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.”
Regional growth ambitions
Southeast Asia’s rapid market expansion has made it a strategic growth area for global label suppliers. UPM said the investment will not only increase annual production capacity but also enhance efficiency and reliability, supporting customers across a wider range of end-use segments.
By upgrading the Johor Bahru facility, UPM Adhesive Materials aims to accelerate its growth trajectory in the region and sharpen its competitiveness in a dynamic and highly demanding market.
