HELSINKI May 30 The world's second-biggest
self-adhesive label maker, UPM-Kymmene, expects the
unit's sales to grow annually by around 4 percent in coming
years, helped by strong Asian demand, and acquisitions could
accelerate the pace, an executive said.
The Finnish forestry products group, better known for its
troubled magazine paper and newsprint operations, has shifted
focus to more profitable businesses such as labels used in food
packaging, beverage and shampoo bottles and baggage tags.
UPM says the label market is growing as people in developing
countries, especially China, get wealthier and buy more packaged
"We see the global (market) growth at around 4 percent
annually, and we will grow in general along with that. If we can
find suitable acquisitions, the growth would be faster," Jussi
Vanhanen, president of UPM's label business, told Reuters.
"There are not very many companies that we would want to
acquire, but of course we have an open mind (to deals), and we
have been making a deal per year," he said.
The business unit last year had sales of 1.2 billion euros
($1.56 billion), or 12 percent of UPM's total revenue, and had
an underlying operating margin - a measure of profitability - of
6.7 percent, compared to 5.1 percent for the company overall.
It holds around 20 percent of the global self-adhesive label
market, second only to Avery Dennison of the United