Expansions: UPM Adhesive Materials to add new coating line at Malaysian facility; Cosmo Films expands US operations with new slitter/rewinder

Helsinki-based UPM Adhesive Materials, formerly known as UPM Raflatac, says it is investing in a new coating line and other facility and material handling upgrades in its label material factory in Johor Bahru, Malaysia. This investment will significantly enhance the factory’s capabilities, quality and efficiency, the company says.

Additionally, it will increase annual production capacity, enabling it to better serve its customers and accelerate growth in the Southeast Asian market, it adds. UPM did not state the capacity increase.

This investment will also bring new filmic capabilities to the Johor Bahru factory. These new capabilities will allow UPM to meet the customer needs in the region, especially for the durables and electronics sectors.

Southeast Asia is currently one of the fastest growing markets for pressure-sensitive labels globally. With strong ambitions to grow in the region, this investment enables UPM Adhesive Materials to further enhance its presence and competitiveness in the local market.

“This major investment into our factory in Johor Bahru, Malaysia, illustrates our strong commitment and ambition to further develop our presence in the fast-growing and highly dynamic Southeast Asia region. With a new state-of-the-art coating line – combined with UPM’s strong technical expertise – we are able to create exceptional value for customers through improved quality, capabilities and services,” says Henning Krebs, Vice President, APAC, UPM Adhesive Materials.

The investment project kicked off in April 2025, and the new coating line is expected to be in operation around halfway through 2026.

In other news, packaging firm Cosmo Films Inc USA, a subsidiary of India’s Cosmo First Ltd (Formerly known as Cosmo Films Ltd) has expanded its operations in North America with installation of a 120 inch-wide new high-speed slitter (3,000 ft/min). With this new installation, the company aims to meet the demand for flexible packaging solutions across North America.

The machine is installed at the company’s Carol Stream Warehouse in Chicago and Cosmo says it will now be able to fulfil customer orders within 10-15 days from the order date, thereby helping customers optimise inventory and reduce warehousing costs by providing just-in-time delivery, and gain flexibility in production schedules.

This investment comes at a time when the North American flexible packaging market is projected to grow from US$85 billion in 2025 to US$123 billion by 2034, fuelled by rising demand for lightweight, sustainable, and customisable packaging across food, personal care, and pharmaceutical sectors.

Speaking on the development, Kulbhushan Malik, Global Business Head, Cosmo Films, said, “We have been growing year over year in the US market, and it continues to be a strategic priority for us. This new investment in the US serves as an extended support platform from India, bringing us closer to customers and optimising our business while creating value for stakeholders involved through a robust and smarter supply chain.”

With latest features, the slitter is designed to work with a variety of substrates, such as BOPP, CPP, BOPET, and PETG films. It also offers a high-speed operation (3,000 ft /min).

This will allow Cosmo Films to provide flexible packaging formats like sachets, pouches, and wraps – all of which are high demand packaging solutions in North America’s rapidly growing food, beverage, and healthcare sectors, it says.

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