UPM Raflatac has invested in hotmelt adhesive mixing and coating technology in China which will come online in the first quarter of 2013.
The technology enables the development of special products designed for niche markets and shorter runs.
It enables UPM Raflatac to expand its standard paper and film product ranges to industries including food and variable information printing (VIP), where hotmelts provide advantages such as high initial tack and reliable adhesion on chilled, moist or rough surfaces.
The firm said it was one of the biggest investments at the Changshu factory since its inauguration in 2007 and further strengthens their position in the Asian labelstock market.
"This investment in the latest technology and local R&D development shows that UPM Raflatac is committed to developing solutions that help labelstock converters in the region build their businesses and grow," said Arto Tuomi, general manager, UPM Raflatac China.