Avery Dennison Invests in New Factory in Brazil

Estimated reading time: 2 minutes

Avery Dennison is gearing up for future growth of RFID technology, improving the efficiency of processes and the relationship between brands. Just months after signing a deal to acquire Smartrac's transponder division, the Company announced today the location of its next RFID (Radio Frequency Identification) manufacturing facility, its first in Brazil and fifth in the world. The new factory will be located in Vinhedo (SP), opening in 2021.

Following the completion of the Smartrac acquisition, the company's RFID business will represent a global platform with over $500 million in revenue offering long-term growth and profitability above the company's average, through an extensive product portfolio. The new facility in Brazil will manufacture a wide variety of inlay designs. Avery Dennison partners with Impinj and NXP to develop world-class RFID tags and incorporates the latest chip technology into its products. In 2019, Avery Dennison received the ARC certification for quality from Auburn University (?https://rfid.auburn.edu/arcquality/?), joining Smartrac as one of only two companies certified globally. In addition, all products comply with global industry standards and regulations. For further information see the IDTechEx report on RFID Forecasts, Players and Opportunities 2019-2029.

As the world's largest UHF RFID manufacturer, Avery Dennison offers solutions for a wide range of industries, from apparel, beauty and food retailing, to healthcare and aviation, among others. "We are very proud to announce this investment in Brazil as it represents an important step for industry 4.0 growth not only here, but throughout South America, with technology that has proven its ability to increase inventory accuracy, improve supply chain agility and increase visibility across all channels, besides enabling greater customer interaction and engagement," says Ronaldo Mello, vice president and general manager, Avery Dennison Latin America. "In addition to Brazil, Avery Dennison's RFID division has a plant in Mexico in Latin America," adds Mello.

With advanced technology for the production of Radio Frequency Identification inlays, Avery Dennison's new plant will have the potential to meet market growth, as evidenced by recent demands for projects in various segments, such as the solutions provided to Grupo Boticário. "We believe in a future where every item will have a unique digital identity and digital life, with the ability to create richer consumer encounters. We are committed to developing and expanding our Intelligent Labels business to enable this vision in many directions. Through a solid portfolio of intelligent RFID solutions, the new manufacturing facility will increase speed and delivery across South America, furthering our vision of a connected world," said Francisco Melo, global vice president and general manager, RFID, Avery Dennison.