The new factory, located in the industralized Guangdong province in southern China, gives the company proximity to an existing roster of Asian customers and direct access to the Chinese market. In Asia, UPM Raflatac serves several RFID market segments, including apparel, ticketing, supply chain management, pharmaceutical, media management, transportation and industrial. In addition to serving local RFID demand, the site will produce products for international export.

The initial annual production capacity of the new facilities will be 100 million pieces, including high-frequency and ultra-high frequency passive RFID tags and inlays. Production capacity can be scaled up by a factor of several hundred million, based on future demand.

The addition of the Guangzhou factory means UPM Raflatac now manufactures tags and inlays on three continents: Asia, North America and Europe.