UPM Adhesive Materials Expands in Southeast Asia with New Northern Vietnam Terminal
UPM Adhesive Materials, formerly known as UPM Raflatac, is expanding its operational footprint in Southeast Asia with the establishment of a new slitting and distribution terminal near Hanoi, Northern Vietnam. This strategic move underlines the company’s commitment to supporting the region’s growing industrial base, particularly in the durable goods and electronics sectors, while strengthening its supply network and enhancing service agility for customers across the region.
Strengthening Presence in a Fast-Growing Market
Vietnam has rapidly emerged as one of the most dynamic economies in Southeast Asia and the broader Asia-Pacific region. With strong GDP growth, expanding industrial capacity, and increasing foreign investment, Vietnam—especially the northern region—has become a key manufacturing hub for global electronics and durable goods producers. Recognizing these trends, UPM Adhesive Materials is positioning itself closer to its customer base in this vital industrial corridor.
The decision to open a new terminal near Hanoi reflects the company’s broader strategy to align its infrastructure with customer needs and regional growth patterns. Northern Vietnam hosts a high concentration of multinational manufacturers producing electronics, appliances, and durable consumer goods—industries that rely heavily on reliable and high-quality label materials. UPM’s new facility is expected to meet the growing demand from these sectors while ensuring faster, more efficient service.
Advanced Capabilities and Customer-Focused Solutions
The upcoming terminal will feature state-of-the-art slitting technology designed to handle a wide range of label materials efficiently and precisely. It will maintain a targeted portfolio of label stock based on the specific requirements of local customers, allowing for greater flexibility in production planning and shorter delivery lead times.
By decentralizing inventory and processing operations, UPM Adhesive Materials aims to improve responsiveness to market shifts and customer demand fluctuations. The terminal will not only serve as a logistics hub but also as a key enabler of operational excellence—reducing turnaround times and ensuring consistent product quality across applications.
Henning Krebs, Vice President of UPM Adhesive Materials for the Asia-Pacific region, emphasized the importance of this investment:
“We are excited to strengthen our presence in the fast-growing area of Northern Vietnam with our new terminal. This investment will enable us to serve our customers in the region with greater agility and efficiency, as well as capture business opportunities in the higher-value durables and electronics segments.”
Accelerating Growth Through Regional Investments
The new Vietnam terminal forms part of a broader wave of investments by UPM Adhesive Materials aimed at strengthening its regional infrastructure and supporting long-term growth. Alongside this expansion, the company has announced significant upgrades to its label material factory in Johor Bahru, Malaysia. The Malaysian site will soon feature a brand-new coating line and improved facility and material-handling systems, enhancing production capacity and efficiency.
These combined investments demonstrate UPM’s proactive approach to expanding its manufacturing and distribution capabilities in Southeast Asia. As regional economies continue to grow and supply chains become increasingly localized, the company’s strengthened infrastructure will ensure it remains a preferred partner for businesses seeking high-performance, sustainable labeling solutions.
Regional Network and Market Leadership
UPM Adhesive Materials already operates two major factories in the Asia-Pacific region—one in China and another in Malaysia. These facilities form the backbone of its production network, which is complemented by an extensive distribution structure comprising eleven terminals and warehouses spread across Southeast Asia, North Asia, and Oceania.
This regional network allows UPM to provide customers with reliable, localized services and responsive logistics solutions. The addition of the Northern Vietnam terminal will further reinforce the company’s reach, enabling more seamless coordination with customers’ production schedules and regional supply chains.
With its deep expertise in sustainable and innovative label materials, UPM Adhesive Materials has established itself as a leading player in the Asia-Pacific label industry. Its continued investments in infrastructure, technology, and customer support demonstrate its commitment to driving operational excellence and fostering sustainable growth across diverse markets.
Commitment to Innovation and Sustainability
Beyond expansion, UPM Adhesive Materials continues to focus on developing environmentally responsible solutions that align with global sustainability goals. The company’s materials and processes are designed to reduce environmental impact and support customers’ sustainability commitments—an increasingly critical factor in the labeling and packaging industry.
As part of UPM’s broader corporate mission to advance the “Biofore” vision—a future where renewable materials replace fossil-based alternatives—the company’s adhesive products and operations reflect a balance of innovation, environmental stewardship, and business performance.
