UPM plans to halt production at label plant, risking 82 jobs

UPM Adhesive Materials has announced plans to shut down its label materials production in Nancy, France, in order to centralise its label material production to more cost-effective units

Jonathan Pert
September 11, 2025
UPM’s Nancy factory, located in North-East France, started operations in 1990

UPM Adhesive Materials, part of the UPM Raflatac Group, has announced plans to discontinue its label materials production in Nancy, France.

According to the company, the decision was driven by overcapacity resulting from “exceptional market developments during the past years.”

UPM Adhesive Materials further states that its plans to discontinue label materials production at the Nancy factory is part of aims to centralise its label material production to more cost competitive units.

As part of these plans, the Nancy site would continue as a distribution terminal, aiming to offer competitive service and lead times to Western European customers. The plans could affect up to 82 jobs at the company.

Tim Kirchen, executive vice president of UPM Adhesive Materials, says that the planned changes aim to support growth “by improving the overall profitability of our operations and maximising synergies.”

Kirchen continues: “By centralising the production to more cost competitive factories, we will also improve the cost efficiency and quality of our products. The Nancy site is planned to be transformed to a distribution terminal to continue providing world-class service to our customers in Western Europe.”

UPM is in the midst of a period of transition, with a number of announcements coming from the company in 2025.

In June, UPM announced that its speciality papers division will invest over €10m (£8.4m) in the modernisation of its Tervasaari mill in Valkeakoski, Finland.

The investment aims to allow UPM Specialty Papers to boost capacity and improve production stability in its specialised products, such as glassines and flexible packaging papers.

UPM purchased British signage materials provider, Metamark, in an estimated £146m deal in February 2025, as part of plans to accelerate its growth into the graphics sector, particularly for its UPM Graphics unit.

Subsequently, Grafityp announced last month that it will formally close and that its graphic films and heat transfer films business will be transitioned to Metamark UK, after it too was purchased by UPM in 2024.

The business area and reporting segment of UPM Raflatac was also renamed to UPM Adhesive Materials in June of this year, aiming to support further growth into graphics solutions and specialty tapes.

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