UPM Adhesive Materials plans to discontinue the production of labelling materials at its site in Nancy, France. The reason is overcapacity in the market. The factory will continue to operate as a distribution centre for Western Europe.
UPM Adhesive Materials is reacting to the market distortions of recent years and is planning to discontinue the production of label materials at its Nancy plant. According to the company, the industry is currently struggling with exceptionally high overcapacity. In future, production is to be concentrated more on more cost-efficient plants.
Up to 82 jobs will be affected by the reorganisation of the Nancy site. However, the factory is not to be closed completely: It is to be converted into a distribution centre that will serve the Western European market with short delivery times and reliable service.
Background and categorisation
„These planned changes are designed to support our growth by improving profitability and realising synergies. By centralising production, we can reduce costs while increasing the quality of our products,“ said Tim Kirchen, Executive Vice President of UPM Adhesive Materials.
UPM Adhesive Materials is one of the fastest-growing areas of the Finnish UPM Group. The business area employs around 3,200 people and generated sales of almost 1.6 billion euros in 2024.
Source: UPM
