The news is in: UPM Adhesive Materials has announced plans to cease label material production at its Nancy plant in Meurthe-et-Moselle, France. The site, which would remain active solely for distribution in Western Europe, would see all production activity disappear.
In its announcement, the management of the division of the Finnish UPM-Kymmene Group explains that this decision comes against a backdrop of "overcapacity resulting from exceptional market trends in recent years" . The label manufacturer wants to concentrate production in plants deemed more competitive. But behind these economic arguments, up to 82 employees out of a workforce of around 180 are threatened by this centralization project.
"These planned changes are designed to support our growth by improving the overall profitability of our operations and maximizing synergies. By centralizing production to more cost-competitive plants, we will also improve the profitability and quality of our products." says Tim Kirchen, Executive Vice President of UPM Adhesive Materials.
UPM Raflatac's Nancy site to retain its role as distribution hub "to offer optimum service and delivery times to its customers in Western Europe" .
No details have yet been given of the timetable.
