UPM strengthens its position in the label materials value chain by building a new woodfree speciality paper machine at its Changshu mill near Shanghai, China. "This move is aligned with our strategic target to have more than 50 percent of our sales from well performing growth businesses in the latter part of the decade. It supports our growth in China and provides an excellent platform to strengthen partnerships with self-adhesive labelstock customers and expand into new end uses in Asia,” says Jussi Pesonen, CEO of UPM.The new machine is an uncoated woodfree speciality machine, capable of producing up to 360,000 tons of uncoated woodfree grades and high quality label papers. The machine will start up by the end of 2014.The investment will also include future-oriented infrastructure investments in the Changshu site. The total investment cost is 390 million Euros. In addition, UPM Changshu is finalizing a 100,000 tons cut-size sheeting line investment, which strengthens the companys leading position in office paper grades in China.Both label paper and uncoated woodfree papers have a healthy demand outlook in Asia. The annual growth of UPM's label paper mix is expected to be eight percent in Asia and four percent globally. In uncoated woodfree grades, UPM focuses on high quality office paper, where the Chinese market is expected to grow by eight percent annually.