UPM Adhesive Materials Announces First Manufacturing Facility in India
GUJARAT, India – UPM Adhesive Materials has officially announced its plans to establish its first manufacturing facility in India, marking a significant milestone in the company’s expansion strategy. The new factory, scheduled to open in early 2028, will be located in the industrial state of Gujarat and will feature a state-of-the-art acrylic-based coating line dedicated to the production of self-adhesive label materials.
This strategic investment represents a major leap forward for the company, transitioning its Indian operations from distribution to full-scale local manufacturing. The move builds upon UPM’s recent momentum in the region, most notably the March 2026 launch of a label material slitting and distribution terminal located near New Delhi.
The decision to establish a physical production presence in India comes as the country experiences a period of rapid economic transformation. Driven by accelerating urbanization, widespread digitalization, substantial infrastructure investments, and a steady rise in household consumption, India’s demand for high-quality packaging and labeling solutions has surged.
According to UPM leadership, local label converters are increasingly seeking more responsive service and shorter lead times. By moving production closer to the end-user, the company aims to offer products more effectively tailored to local requirements.
“This investment reflects our long-term commitment to India and the confidence we have in its growth potential,” said Harri Janhunen, Vice President of Strategy and India & Middle East at UPM Adhesive Materials. “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.”
The Gujarat facility will serve as the centerpiece of UPM’s domestic supply chain. When combined with the company’s existing distribution terminals near Mumbai and New Delhi, the new factory will significantly enhance UPM’s ability to provide reliable and agile service to customers throughout the country.
Beyond proximity to the customer base, the company highlighted India’s distinct competitive advantages as a key driver for the investment. The availability of a cost-competitive raw material supplier pool and access to a highly skilled local workforce were cited as essential factors that will support UPM’s long-term growth ambitions in the region.
As the 2028 operational date approaches, the establishment of this facility underscores a broader industry trend of multinational corporations localizing their supply chains to navigate the complexities of the global market. With this new coating line, UPM Adhesive Materials is positioning itself to be a primary partner for India’s burgeoning packaging sector, ensuring that its label solutions can keep pace with the country’s dynamic economic trajectory.
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