Avery Dennison Corporation, Pasadena, CA, has formed a new business unit dedicated to the manufacturing and marketing of low cost radio frequency identification (RFID) inlays and tags. The new division will market RFID inlays and tags to label converters, who supply pressure sensitive labels to end user markets.
“As we shift our RFID activities from a business venture mode to implementing our high speed, low cost manufacturing strategy, we continue to be enthusiastic about the excellent long term growth opportunities of RFID,” says Philip M. Neal, chairman and CEO of Avery Dennison. “We see the RFID business as the company’s largest long term growth opportunity.
“Retail, pharmaceutical and packaged goods companies throughout the world are confirming that pressure sensitive labels are ideal vehicles for carrying an RFID chip and antenna. As one of the largest producers of pressure sensitive labeling materials, we are positioned to capture a meaningful share of this potentially huge, new market.”
The RFID business unit will be headed by Mathew S. Mellis, who has been appointed vice president, RFID and specialty converting. Mellis is a 25-year Avery Dennison veteran, having led the industrial and automotive products business for the past 14 years. Stan Drobac, vice president of RFID applications, will lead the division’s sales, marketing and R&D activities.
Avery Dennison is a participant in a pilot program with the US Transportation Safety Administration to enhance security at the nation'’s ports by developing an RFID-enabled device that monitors container shipments on ocean vessels.
The company has accelerated its investment in RFID with plans in 2004 to more than double the previous year’s spending on R&D. The company is developing a variety of RFID labeling applications, and is creating a manufacturing processes to allow for production of RFID labels in the