Finland-based pressure-sensitive label supplier UPM Raflatac will install an approximately €13m coating line at its self-adhesive labelstock facility in Nowa Wies, Poland.

The investment is aimed at increasing production capacity of film labelstock. It is expected to support the company’s target to secure long-term cost-competitive growth in films.

Following the planned investment, sheet coating will be centralised in Nowa Wies. UPM plans to close an older film coating line in Tampere and the siliconising line in Tervasaari, Finland. It will also increase the productivity of its labelstock business by closing sheet labelstock coating operations and reducing capacity in sheets finishing in Polinya, Spain.

The new line is slated to commence operations in the first quarter of 2015. From this date, the company estimates that it will save approximately €4m annually, which may exceed €6m by 2016.

The estimated total personnel impact following the implementation of all plans would be a maximum of 122 positions in the affected countries: 86 in Spain and 36 in Finland. UPM plans to complete the majority of restructuring by the end of 2014.

UPM Raflatac executive vice president Tapio Kolunsarka said that after the planned changes, the company will be highly productive serving its key product segments, with sufficient capacity to meet the needs of the future.

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"In our film business we have enjoyed robust growth in Europe in recent years and therefore we are planning to increase filmic coating capacity in Nowa Wies, Poland," Kolunsarka added.

The initiatives are expected to support the company’s growth target of adding €200m of earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the coming three years.