UPM Adhesive Materials strengthens Southeast Asian market position

UPM Adhesive Materials is investing in a new coating line and other upgrades in its label material factory in Johor Bahru, Malaysia.

The facility and material investment aims to improve the factory’s capabilities, quality, and efficiency. UPM says it will increase its annual production capacity to better serve its customers and accelerate growth in the Southeast Asian 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,” says Henning Krebs, vice president for APAC at UPM Adhesive Materials. 

“With a new coating line, combined with UPM’s strong technical expertise, we are able to create exceptional value for customers through improved quality, capabilities, and services.” 

Higher-value end-uses

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

UPM also expects the upgrade to bring new filmic capabilities to the Johor Bahru factory. The new capabilities will allow UPM to meet the customer needs in the region with greater efficiency and reliability, and distinguish itself in higher-value end-uses, including durables and electronics.

Southeast Asia is one of the fastest-growing markets for pressure-sensitive labels globally, says UPM. The investment enables UPM to strengthen its regional presence and competitiveness.