UPM to Open First Label Material Factory in India by Early 2028

UPM Adhesive Materials plans to open its first manufacturing facility in India in early 2028, expanding its presence in the country with an acrylic-based coating line for self-adhesive label materials. The factory will be located in Gujarat, marking a shift from distribution operations towards local production.

The investment follows UPM’s March 2026 announcement of a new label material slitting and distribution terminal near New Delhi. Together with its existing terminal operations near Mumbai, the new facility is intended to improve service reliability and reduce lead times for customers across India.

UPM said the investment responds to changing requirements in the Indian label market, where urbanization, digitalization, infrastructure investment and rising household consumption are contributing to economic growth. As the market develops, label converters increasingly require faster service, shorter lead times and products suited to local requirements.

The Gujarat coating line will expand UPM’s manufacturing footprint in the region while providing access to India’s raw material supplier base and skilled workforce. The company said these factors support its growth plans in the Indian market.

“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,” said Harri Janhunen, Vice President, Strategy and India & Middle East, UPM Adhesive Materials.

The planned facility represents UPM Adhesive Materials’ first factory in India, building on its distribution infrastructure as the company expands its operations in the country.