UPM has announced it will discontinue label materials production at its site in Nancy, France, as part of a broader plan to improve profitability and streamline operations within its Adhesive Materials business.
The decision follows the required consultation with employee representatives, completed on November 12 and approved by French authorities on November 28.
While production will cease, the Nancy site will continue operating as a slitting and distribution terminal, providing what UPM describes as best-in-class service and lead times for customers across Europe. The restructuring will impact 79 employees, with UPM offering support measures to help mitigate the effects of the job reductions.
According to the company, centralizing production in more cost-competitive facilities is key to improving performance, maximizing synergies, and supporting the long-term growth of UPM Adhesive Materials. The business, which employs around 3,200 people globally, reported nearly €1.6 billion in sales in 2024 and continues to expand its portfolio of self-adhesive labels, graphics materials, and specialty tapes.
UPM noted that the changes are part of its ongoing efforts to enhance cost efficiency and product quality across its global operations. The company, listed on Nasdaq Helsinki, operates in renewable fibres, advanced materials, decarbonization solutions, and communication papers, with sales of approximately €10.3 billion and 15,800 employees worldwide.
UPM Adhesive Materials develops and supplies high-performance self-adhesive label materials, graphic solutions, and specialty tapes for global markets. The business employs about 3,200 people worldwide and generated nearly €1.6 billion in sales in 2024.
Source: UPM
