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Avery Dennison Announces RFID Factory in Brazil

The company predicts that the market for radio frequency identification tags will grow by more than 20 percent per year in that country.
By Edson Perin
Feb 21, 2020

Avery Dennison has announced the installation of a new plant in Vinhedo, Brazil, for the production of radio frequency identification (RFID) tags. This will be the company's fifth plant in the world capable of producing tags, in addition to those in the United States, Mexico, Europe and China. The factory, to be opened in 2021, will serve customers in Brazil and throughout Latin America.

Avery Dennison's current plant in Vinhedo has been producing labels and adhesives since 1970 for such sectors as manufacturing, retail and health care. According to Ronaldo Mello, Avery's VP for Latin America, the new plant seeks to meet RFID's growth in the region of 20 percent per year, with the technology corresponding to $500 million of the company's total U.S. revenue of $7 billion.

Avery Dennison's factory in Vinhedo, Brazil
The decision to create the new plant in the country is based on the growth of the RFID market in the region, especially in Brazil. "Our expectation is that the growth of the Brazilian market will exceed the world average of 20 percent," says a spokesman for Avery Dennison. "We cannot open local numbers, but we can say that we are the largest manufacturer of UHF inlays in the world, and that Avery Dennison's fifth RFID plant in Brazil is designed to meet the growing demand in South America."

Avery Dennison Brazil's operation is the largest in Latin America and the largest operation in the region, the company reports. "When we talk specifically about RFID, in addition to Brazil, in 2021 we have an RFID plant already installed in Juarez, Mexico," the spokesman says. The growing demand and response of the Brazilian market to technology, as well as the nation's strategic position to supply other markets in South America, are among the factory's advantages. Since Avery already has a plant in Mexico, the Brazilian factory will serve the local market and other countries throughout South America.

Within the concept of smart packaging, consumer companies increasingly seek Avery Dennison to participate in projects to validate the benefits of technology in the local market. "In addition," the Avery spokesperson explains, "we are great defenders of the connection of the physical and digital worlds, and we believe in a future in which each item will have a unique digital identity and a digital life. Therefore, we are committed to supporting the different segments with production, support and local development."

For such diverse sectors as clothing, beauty, food and aviation, Avery Dennison is already providing RFID inlays. "The products now have a unique digital identity, allowing them to connect to the Internet and provide more resources for companies and consumers," the spokesperson states. "For companies, our smart labels make inventories more visible and more productive, while providing better insights into consumer behavior and preferences. For consumers, our smart labels improve experiences and make shopping more satisfying, informative and fun. And for the planet, they represent an increase in sustainability by improving transparency and reducing waste throughout the supply chain, in addition to making product disposal more responsible."

The company serves some of its global customers in Brazil, such as Spanish clothing manufacturer Zara and sporting goods brands Nike and Adidas, in addition to local names like fashion retailer Renner. A pilot of RFID technology is also being tested with Boticário's network of perfumeries and cosmetics for stock control.

One pilot that Avery Dennison has been testing with Delta Air Lines involves a smart tag so that customers know where their bags are located. The idea is that when a traveler disembarks from a flight, he or she will receive an SMS text message saying that the luggage will be on a certain conveyor belt and is ready for pickup.

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