January 2008 was a significant month for Avery Dennison and for our customers in the Asia Pacific region.

On 15 January, Dean A. Scarborough, President and Chief Executive Officer of Avery Dennison, unveiled the largest coating machine in China at our Guangzhou facility. The state-of-the-art coater, which represents an investment of US$26 million, is over 100 meters long and produces pressure-sensitive (PS) adhesive label materials. It will enable Avery Dennison to meet the expected tremendous growth in the Asia Pacific region during the next decade, further enhancing our leading position in the PS labeling market. During the last 13 years, the company has invested more than US$265 million in China and this amount should increase to more than US$300 million by 2010.

This new coater will ensure Avery Dennison continues to be the leader in the production of more stable and consistent label materials at Guangzhou. "I believe that the continuous increase in consumption in the emerging markets of Asia Pacific represents a great opportunity for Avery Dennison and our customers," said Dean Scarborough. "We'll be able to expand our partnerships with our local customers, provide them with innovative products and technology and give them the edge they need to successfully compete in this dynamic market."

During the last decade, the economic growth of India and the surrounding region has also been phenomenal and Avery Dennison is proud to have been part of that growth. On 17 January, Dean Scarborough opened another new production facility-this time in Pune, which is situated in the Western Indian state of Maharashtra. It will produce technically advanced PS materials for industrial and consumer products manufactured in the Asia Pacific region.

This modern plant, which is situated on a 28-acre site, is Avery Dennison's third major facility in India and represents an investment of over US $13 million. The up-to-date equipment includes a new hot melt tandem coating line and brings total investment in India to more than $30 million.

"We'll be able to better serve our growing customer base in the region by providing the best available quality products and services, and we’ll continue to be an active partner with them in growing their businesses," said John C. Quinn, Vice President and General Manager, Roll Materials Asia Pacific.

"By leveraging our global assets, we are able to improve the value of our local product portfolio." says Darren Milligan, Marketing Director for Avery Dennison Australia and New Zealand. "The addition of these two new state of the art coating lines will enhance the range of new product options we can take to our customers."