Radio Frequency Identification Spreads to South China Region

UPM Rafsec providing RFID tags for the first Gen2 project in Hong Kong, South China region

Tampere, Finland — January 3, 2006 — UPM Rafsec, a radio frequency identification (RFID) tag and inlay manufacturer, announced that it has entered into an agreement with Supply Chain and Logistics Technology Holdings Limited (SCL), a joint-venture of The Hong Kong Polytechnic University (PolyU), to deliver UPM Rafsec Gen 2 RFID tags.

UPM Rafsec, together with SCL, will supply tags to Novetex Spinners Limited (Novetex), the world's largest single site woollen spinner, for a project that will mark the first Gen 2 RFID initiative in Hong Kong and the South China region.

The new RFID system being deployed for Novetex by SCL, which is the consultant as well as hardware and solution provider for the project, will touch three different processes in Novetex's Zhuhai warehouse: the receiving process, cycle counting and the delivery process.

UPM Rafsec's Gen 2 RFID tags are expected to help Novatex achieve real-time visibility of raw materials and product inventory, leading to fewer production delays and faster response times to customer requests. Novetex said it expects substantial enhancements in operating efficiency at its warehouse when the project is fully deployed.

Marcus Vaenerberg, vice president Sales at UPM Rafsec, commented: We're extremely excited to be taking part in the first Gen 2 project in the South China region. The technology is just starting to take hold here. However this region is very dynamic.

Novetex's complete RFID identification and tracking solution will go live in early 2006.