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UPM Raflatac to move its RFID business

May 11, 2009

The company's plan involves the transferring of RFID tag and inlay production from Finland to China and the USA.

UPM Raflatac, in order to strengthen its RFID business, has announced a plan that includes turning its Jyväskylä facility in Finland into a development center equipped with special resources for global product and process development as well as for piloting new products. The plan also involves the transferring of RFID tag and inlay production from Jyväskylä to Guangzhou, China, and to Fletcher, NC, USA.

The company says production at the new factory in Guangzhou and the Fletcher factory will be developed to meet market demand. UPM Raflatac's current RFID business has around 200 employees. According to the plan, if its measures are realized, the number of employees will increase in Guangzhou and decrease in other locations. The total number of employees of the RFID business will decrease by around 25 people.

Plans concerning production transfer and development will be negotiated with employees according to local legislation. Opportunities for relocation within UPM as well as retraining will be handled as part of the negotiations. The proposed actions are estimated to be completed by the end of March 2010.

“With the planned measures, we are seeking to improve our growth potential and future profitability. We will be stronger than before and focus on serving our customers and deployment of RFID. UPM Raflatac is committed to developing the RFID business and strengthening its current position as the globally leading producer of RFID tags and inlays,” says Christer Härkönen, senior vice president of the RFID business at UPM Raflatac.