Major Investment in the Label Industry
Significant Investment in Label Sector
UPM Raflatac, a label material supplier of Finnish global forestry and paper products company UPM Group, has renovated its terminal in Istanbul Sancaktepe with a TRY 60 million investment. With this investment in Turkey, the company is strengthening UPM Raflatac's position as a regional hub.
UPM Raflatac, a global label materials supplier known for its work in sustainability, has made a new investment in Turkey. Finnish UPM Group has expanded its Istanbul Sancaktepe headquarters—where UPM Raflatac has operated for more than 20 years serving the label market—with a TRY 60 million investment. Officials emphasized that the new label terminal located on 5,000 m2 reflects Turkey's strategic position, production and export potential, and serves as the region's hub. Expressing confidence in Turkey, officials stated that the Istanbul terminal will manage 21 countries simultaneously worldwide.
Cem Karabayır, Country Manager for Turkey, Caucasia, Middle East and South Asia at UPM Raflatac, shared his views on the matter, expressing that the Istanbul terminal operating on 5,000 m2 is the most important part of UPM Raflatac's growth strategy in Eastern Europe. Stating that they primarily produce label materials for the food, beverage and pharmaceutical sectors, Cem Karabayır added that the Istanbul headquarters will strengthen the company's position in the self-adhesive label market in the region through faster delivery times and a wider product range. Karabayır said: "Turkey is a very important and potentially strong market for UPM Raflatac. With the new Istanbul terminal, UPM Raflatac's sales and management office for Caucasian and Middle Eastern countries is now Turkey. For 21 years we have been producing label materials at high sustainability standards for the label market in Turkey and exporting to neighboring regions.
Our country's sustainable growth is only possible by utilizing export potential. Finland trusts Turkey's production and export potential. This terminal, which we have expanded with a TRY 60 million investment, will play an important role in the company's shipments to Balkan countries, Caucasia and the Middle East, and in growth in this region thanks to its strategic location. Including myself, we have 43 Turkish employees in three different units (labels, paper and wood products) in our Turkey operations. As UPM Raflatac, with our new terminal we are managing the label operations of 21 countries from a single center—from Istanbul." he said.
UPM Raflatac's Goal: Becoming the First Global Label Materials Company Beyond Fossils
UPM Raflatac, which has gained worldwide recognition for its work in sustainability, operates 10 factories worldwide, 26 terminals and employs 3,000 workers while operating in its field for over 40 years. Cem Karabayır stated that labels are an integral part of sustainable packaging and noted that consumer demand for purpose-driven sustainable products and solutions has reached higher levels than ever before; consumers are demanding not only more sustainable products from brands, but also more sustainable packaging. Karabayır said: "We must transition to sustainable solutions for the circular economy, which is the guarantee of a better future, and close the circular loop. This is only possible by producing for a smarter future beyond fossils.
As UPM Raflatac, we aim to be the first global label materials company to go beyond fossils. We continue our efforts to provide renewable alternatives instead of fossil-based materials. We see labels in everything and everywhere we consume. Labels are therefore very important in sustainable packaging. Labels can act as accelerators of change by increasing the sustainability of packaging, providing information about product sustainability, enabling packaging to be recycled and reused, and supporting the circular economy." he said.
Cem Karabayır continued his remarks as follows. "The packaging industry has initiated the transition from fossil-based carbon to renewable raw materials and from linear to circular economy. We must move toward a future where we can neutralize the environmental impact we create. Because operations carried out with responsibility awareness and circular economy create competitive advantage. Going beyond fossils for UPM Raflatac means reducing pure fossil carbon sources that add carbon load to the carbon cycle or replacing them with other sources. We apply the principles of 'reduce, recycle, renew and reuse' in every area—from responsible raw material procurement and sustainable operations to innovative products and services." he said.
Sustainable Forestry Approach
UPM Raflatac produces labels for a smarter future beyond fossils. The company sources the paper—raw material for its labels—from sustainable industrial forests and manufactures with raw material from these forests. This method reduces deforestation while the forest area and number of trees used for raw materials are regularly increasing. For UPM Raflatac's label materials, 100 new trees are planted every minute and 50 million annually. UPM Raflatac, which currently uses trees planted 20-25 years ago, ensures that at least 3 trees are planted for every 1 tree. The company's sustainable forests are located in Finland and the Baltic regions while they do not benefit from forests in Turkey. The Finnish company, which turns to wood rather than plastic for its label raw materials, sources no wood from tropical rainforests or forests converted to nurseries. In this way, the company supports efficient resource use, transition to circular economy and mitigation of climate change.
