UPM is continuing the strong development of its label business by building a world-class self-adhesive label materials factory in Poland. The value of the investment is EUR 90 million. Construction of the factory will begin in the third quarter of this year, and production is scheduled for start-up in the final quarter of 2008.

"For UPM, this will be the first industrial operation in eastern Central Europe. Label business is one of UPM's core businesses, and a strategic growth area for the company. We have invested strongly in its development in recent years, and its sales and result have developed favourably." says Jussi Pesonen, President and CEO of UPM.

The new factory will feature newest proprietary technology both in coating and finishing. It will supply a wide range of high-quality film and paper labelstock products with water-based acrylic and hot-melt adhesives.