UPM Adhesive Materials, formerly known as UPM Raflatac, plans to open a new slitting and distribution terminal near Hanoi, Northern Vietnam, to support its growth in Southeast Asia. The new facility will ensure agile service for customers in the Northern Vietnam area.

Vietnam is one of the fastest-growing markets in Southeast Asia and the whole Asia-Pacific. Northern Vietnam has a high concentration of businesses in the durables and electronics end-uses, which creates a significant demand for high-quality label materials.

The new terminal will be equipped with state-of-the-art slitting capabilities. It will offer a targeted portfolio of label material inventory based on the needs of the local customers to ensure greater efficiency and flexibility in deliveries.

“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,” says Henning Krebs, vice president, APAC, UPM Adhesive Materials.

The investment project has been kicked off, and the terminal is expected to be in operation around mid-2026. UPM Adhesive Materials has also announced an investment in a brand-new coating line and other facility and material handling upgrades in its label material factory in Johor Bahru, Malaysia. Both investments enable UPM Adhesive Materials to better serve its customers and accelerate growth in Southeast Asia, where it holds a leading market position in label materials.

UPM Adhesive Materials operates two factories in the Asia-Pacific, one in China and one in Malaysia. It offers reliable services close to customers through eleven terminals and warehouses across Southeast Asia, North Asia and Oceania.