UPM Adhesive Materials launches new terminal in Northern Vietnam 

VIETNAM – UPM Adhesive Materials has started work on a new slitting and distribution terminal outside Hanoi in Northern Vietnam. 

The site aims to speed up deliveries for local customers in the durables and electronics sectors. According to company details, this step comes as Vietnam emerges as a key growth spot in Southeast Asia and the wider Asia-Pacific region.

The facility will feature slitting equipment and stock a selection of label materials tailored to area needs. 

This setup allows for quicker order fulfillment and reduced lead times. Northern Vietnam hosts many factories producing consumer goods and tech components, driving up requirements for durable labels. 

In a statement, Henning Krebs, vice president for APAC at UPM Adhesive Materials, said, “We are excited to strengthen our presence in the fast-growing area of Northern Vietnam with our new terminal.” 

He added that the project would help the company meet demands in electronics and durables more effectively.

Construction began recently, with operations set to start by mid-2026. 

This follows a separate upgrade at UPM’s label factory in Johor Bahru, Malaysia, where a new coating line and handling improvements will increase annual output. 

A report by industry watchers notes the Malaysian site now includes expanded filmic production, raising capacity to handle more specialized orders. 

These changes support UPM’s role as a top supplier of label materials across Southeast Asia.

Vietnam’s packaging sector sees further shifts toward greener practices. 

Recent government moves have refined the extended producer responsibility system, requiring makers and importers to manage collection and recycling of items like plastic wraps and containers. 

This targets waste reduction in fast-expanding areas such as Hanoi. Producers now face clearer rules on reuse targets, pushing firms to adopt recyclable options in labels and beyond.

In Malaysia, sustainable efforts gain traction too. 

Local innovators have rolled out compostable bags that break down into fertilizer under home conditions, addressing microplastic buildup. 

Meanwhile, regional players like SCG Chemicals partner with brands to create food-grade recycled packaging from waste plastics, rolling it out across ASEAN markets. 

Such initiatives highlight a push for circular materials in everyday goods.

UPM Adhesive Materials runs two main plants in Asia-Pacific, one in China and one in Malaysia, backed by eleven terminals and warehouses stretching from Southeast Asia to Oceania. 

These sites keep supplies close to end-users, cutting transport distances. 

The company’s moves in Vietnam and Malaysia signal steady expansion amid regional manufacturing booms. Demand for quality labels continues to climb, especially as electronics exports from northern Vietnam hit record levels this year.

Overall, these facilities position UPM to handle more volume without delays. The Vietnam terminal alone will stock items for quick access, serving brands in high-tech assembly lines. 

As Southeast Asia’s economy grows at over five% annually, investments like these ensure steady material flow for packaging needs.

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