UPM to open first label material factory in India

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

The investment continues UPM’s expansion in India, following the company’s March 2026 announcement of a new label material slitting and distribution terminal near New Delhi.  

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. 

The new coating line extends UPM’s presence in India from distribution into local production. Combined with terminals near Mumbai and New Delhi, it strengthens UPM’s ability to serve customers across the country with more reliability and speed. India also offers a cost-competitive raw material supplier pool and a skilled workforce, supporting UPM’s growth ambitions in the region. 

‘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.