UPM Raflatac to Shut Kaltenkirchen Factory

UPM Raflatac, a leading global supplier of sustainable labeling solutions, has announced plans to permanently close its factory in Kaltenkirchen, Germany. The decision is aimed at enhancing efficiency and productivity. This plan will be implemented in phases throughout 2025, announced the company on November 27 in a company-wide press-release.

The closure will impact 154 positions at the facility. Label material production will be relocated to UPM Raflatac's factories in Poland and Finland. Additionally, graphics solutions production will be transferred to the company's Belgian factory during 2025. However, graphics solutions production will continue in Kaltenkirchen until the upgraded CM 3 coating line is fully transferred.

Tim Kirchen, Executive Vice President of UPM Raflatac, explained the rationale behind the decision. He said, "Our goal is to accelerate growth in the Films and Graphics business by improving overall operational profitability and maximizing synergies. By centralizing production in more cost-competitive factories, we will enhance cost efficiency, product quality, and customer service."

This news comes amidst the company’s previous announcement in October that it plans to cut more than 110 jobs across its facilities in Finland to increase efficiency and maintain profitability. According to the company’s website, UPM Raflatac currently employs 3,100 people in its 13 factories and 20 distribution terminals globally. Their annual sales revenue is €1.5 billion ($1.58 billion), with it’s forecasted 2024 net sales to be lesser by 1.6%. This is still a progress as compared to their last year’s net sale dropping by 10.75% and generating €1.46 billion ($1.54 billion).

UPM Raflatac's shares dropped 0.87% following the announcement of the factory shutdown.

About UPM Raflatac

UPM Raflatac is a global leader in sustainable labeling solutions. The company specializes in self-adhesive paper and film products, catering to a wide range of industries. Their product portfolio includes label materials, graphics solutions, removable self-adhesive products, and onserts.

UPM Raflatac's solutions are designed to enhance product packaging, meet business objectives, and contribute to sustainability goals. Their innovative services and design capabilities, coupled with a strong focus on responsible sourcing and a 360-degree life-cycle approach to sustainability, set them apart.

According to its website, to meet the evolving needs of the market, UPM Raflatac is expanding its global footprint. They are investing in new production facilities and focusing on emerging markets like South America and Asia. Their commitment to a smarter future beyond fossils drives their efforts to develop sustainable labeling solutions.