UPM growing in label paper business

P&PC staff
May 07, 2018
By P&PC staff
May 7, 2018 – UPM, a world leader in label papers, continues to grow in release liner segments and anticipates continued growth in all markets driven by favourable economic conditions and a strong increase in specialty paper demand for labeling, packaging and e-commerce as well as in medical and hygiene applications.

To strengthen its position, UPM will rebuild paper machine two at its Nordland mill in Dörpen, Germany and convert it from fine paper to glassine paper production. The machine will be equipped with new finishing equipment and starts producing glassine paper as of the fourth quarter of 2019. The planned capacity after the rebuild will be 110,000 tonnes per year. The total investment in Nordland is EUR 116 million. The production of woodfree papers on PM2 in Nordland will continue until the third quarter of 2019, and the machine will be producing both glassine and woodfree paper during the ramp-up phase.

UPM has also decided to further increase the release liner base paper capacity at UPM Changshu mill in China. Since the successful startup of the paper machine three in Changshu, UPM has established a strong position in the label paper segment in Asia. By installing a second supercalender on paper machine three, there will be an additional capacity of more than 40,000 tons of glassine paper a year as of the first quarter of 2020. The total investment in Changshu is EUR 33 million.

"We see strong growth in all our market segments and we are committed to be part of the growth," Bernd Eikens, executive vice-president of UPM Specialty Papers, said. "The planned investments in Nordland and Changshu, along with the earlier announced calender investment at our Jämsänkoski mill, will increase customer confidence in their global growth in release liner applications. The planned installations will also enable increased specialization of our assets. Thus we can improve our operational efficiency and strengthen supply security."

UPM Specialty Papers produces labeling and packaging materials to global markets and fine papers to Asian markets. Its main customers are paper converters, distributors, retailers and printers.

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