UPM to open first label-material coating plant in Gujarat, India
- UPM will open its first factory in India in Gujarat featuring an acrylic-based coating line for self-adhesive label materials.
- Production is planned to begin in early 2028.
- The plant expands UPM’s presence beyond distribution and complements terminals near Mumbai and a March 2026-announced terminal near New Delhi.
- UPM cites faster customer response, shorter lead times, and access to India’s raw material suppliers and skilled workforce as drivers for the investment.
Project overview
UPM Adhesive Materials plans to open its first factory in India in the state of Gujarat, with an acrylic-based coating line for self-adhesive label materials. Production is slated to begin in early 2028.
Strategic rationale
The move shifts UPM’s India footprint from distribution into local production to meet growing demand driven by urbanization, digitalization, infrastructure investment and rising household consumption. The company says a local coating line will allow faster responses to customer needs and shorter lead times.
Network and local advantages
The new plant will work alongside UPM’s existing terminals near Mumbai and a terminal near New Delhi announced in March 2026, strengthening national service reliability and speed. UPM also cites India’s cost-competitive raw material supplier pool and skilled workforce as supportive factors for its regional growth ambitions.
Leadership comment
Harri Janhunen, Vice President, Strategy and India & Middle East, UPM Adhesive Materials, said the investment reflects a long-term commitment to India and confidence in its growth potential, adding that a local coating line enables faster customer response while providing access to India’s raw material base and talent pool.
Source: UPM