UPM Raflatac, a provider of sustainable labelling solutions, is set to permanently shut down its Kaltenkirchen films and graphics factory in Germany to improve competitiveness.

This strategic move will impact 154 positions and will be executed in stages throughout 2025, with a focus on maintaining customer satisfaction and quality.

UPM Raflatac executive vice-president Tim Kirchen said: “The aim of these changes is to accelerate our growth in the Films and Graphics business by improving the overall profitability of our operations and maximising synergies.

“By centralising the production to more cost-competitive factories, we will also improve the cost efficiency and quality of our products and will be able provide better service to our customers.”

The label material production will be relocated from the Kaltenkirchen factory to UPM Raflatac’s factories in Poland and Finland.

Meanwhile, the production of graphics solutions will be transferred to UPM Raflatac’s factory in Belgium in 2025.

Until the upgraded CM 3 coating line is fully transferred, graphics solutions production will continue at Kaltenkirchen.

UPM Raflatac is known for its self-adhesive paper and film products, including label materials and graphics solutions. The company operates 13 factories and distributes its products globally.

In addition to the closure, UPM Raflatac has expanded its North American operations by opening a new distribution terminal in Ajax, Ontario, Canada.

The 30,000ft² facility aims to enhance service capabilities for Eastern Canadian customers and complements the three existing factories and two terminals in North America.

The Toronto-based terminal features advanced slitting and material handling technology.

UPM Raflatac has also partnered with Eurostampa on the Envelope 2024 project, which highlights innovative label designs and sustainable materials.