Finnish material solutions group UPM is discontinuing label materials manufacturing at its Nancy facility in France.
The announcement followed the completion of consultation procedures with staff representatives.
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The consultation concluded on 12 November 2025, and the move subsequently received clearance from the French authorities on 28 November.
79 employees will be impacted by the move, with measures to support those impacted by the job cuts.
While production of label materials will cease, the Nancy site will continue functioning as a slitting and distribution centre.
UPM described the change as part of a broader effort to enhance the profitability of its adhesive materials operations.
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By GlobalDataThe reorganisation is aimed at consolidating production in factories that are cost competitive, while maximising synergies and enhancing cost efficiency and product quality.
UPM Adhesive Materials employs 3,200 people worldwide and generated close to €1.6bn ($1.86bn) in sales in 2024.
Parent group UPM operates globally with 15,800 employees and annual sales of €10.3bn.
In October 2025, UPM Adhesive Materials revealed a curated sample folder, presenting five label materials developed for wine and spirits packaging.
The collection is being distributed across Europe, North America, South America and the Asia Pacific region.
In September, UPM Adhesive Materials announced that its releasable general-purpose RW85C adhesive had been certified by RecyClass.
This certification highlights the adhesive’s compatibility with recycling processes for both high-density polyethylene containers and polyethylene terephthalate bottles.
