UPM Adhesive Materials to open first India factory targeting acrylic coatings

UPM Adhesive Materials has announced it will open its first factory in India in early 2028. Located in the state of Gujarat, the factory is set to feature an acrylic-based coating line for self-adhesive label materials. 

The coating line aims to extend UPM’s presence in India from distribution into local production. Integrated with terminals near Mumbai and New Delhi, it enhances UPM’s ability to serve customers across the country with reliability and speed, according to the company. 

Harri Janhunen, VP for Strategy and India and the Middle East at UPM, says: “This investment reflects our long-term commitment to India and the confidence we have in its growth potential. A local coating line allows us to respond faster to our customers’ needs, while giving us access to India’s strong raw material base and talent pool.” 

Strengthening regional business 

The investment continues UPM’s expansion in India. Earlier this year, the company announced the opening of a slitting and distribution terminal near New Delhi, growing its footprint in the emerging market. The terminal was also said to feature a customized label material inventory, designed to meet regional consumer needs. 

“India’s economy is growing rapidly, driven by urbanization, digitalization, infrastructure investments, and rising household consumption. As the market develops, label converters need more responsive service, shorter lead times, and products tailored to local requirements,” says the company. 

UPM also notes that India provides a “cost-competitive raw material supplier pool and a skilled workforce,” supporting UPM’s growth strategy in the region. 

The company is growing its business in the Asian market. Last year, UPM invested in a coating line and other upgrades in its label material factory in Johor Bahru, Malaysia. 

Earlier this year, UPM participated in Finnish Prime Minister Petteri Orpo’s business delegation during his official visit to Beijing, China. During the visit, UPM signed memoranda of cooperation with customers in China. 

“China remains one of our most important markets. UPM is committed to its long-term operations in China, with a strong focus on innovation-driven development,” said the company. 

In Europe, recently, Avantium, a Dutch company specializing in renewable and circular polymer materials, reached an agreement with UPM for the sale of the intellectual property related to its Ray Technology business. 

Last year, UPM-Kymmene and Sappi signed a non-binding letter of intent to create a joint venture combining their regional graphic paper operations. The planned consolidation is expected to generate roughly €100 million (US$116.5 million) in annual synergies. 

However, last month, the European Commission informed UPM and Sappi that its proposed joint venture may restrict competition in the communication paper market.