UPM Raflatac is to begin production of RFID tag and inlays in Guangdong province in southern China to serve the fast-growing Asian market.

Production is due to start in the third quarter of 2008, and the new manufacturing site will serve all RFID end-use areas, including ticketing and the apparel industry.

In Guangzhou, UPM Raflatac will manufacture both high-frequency (HF) and ultra-high frequency (UHF) passive RFID tags and inlays.

The initial RFID tag production capacity will be 100m pieces per year and can rise to hundreds of millions of pieces according to demand.

The company also has RFID production capacity in Finland and in North Carolina in the US.