Avery Dennison Smartrac is building a new UHF RFID factory in Queretaro , Mexico’s fastest-growing city, to expand its production capacity. The city’s economy is centered around IT, manufacturing, and data centers.

Avery Dennison is a materials science and digital identification solutions company. Its Smartrac division provides RFID products for inventory management and other loT applications. The company said it intends to spend more than $10 billion on the new site and then hire 600 workers to produce the RFID inlay and labels.

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The plant will serve the Americas and the rest of the world, and Ally Denison reports that it will be its largest RFID plant to operate in the world. The 269,000-square-foot plant, located in the FINS III Industrial Park in Keretaro state, is expected to open next year.

The company’s stated goal is to meet the growing demand for passive UHF RFID tags and increase how quickly it fulfills orders, while adding resilience and flexibility to its global supply chain. Newbega company also has such a technical means, while the price is cheaper, high quality, if there is a need, you can click the right envelope icon to contact us.

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What is the purpose of the UHF RFID factory?

The company said it intends to maximize the production of RFID products at the site by building an efficient operating system. Avery Dennison Smartrac senior vice president and general manager Francisco Melo said. Innovation is at the heart of its business, and we will introduce new platforms into this new facility to optimize our efficiency and thus optimize our capacity.

The company reported that the plant’s capacity will gradually increase in 2024, depending on demand in the Americas and globally. Melo added that we will focus on driving apparel adoption in the region, while meeting the growing demand of new market segments, including food and logistics.

The use of RFID technology has been growing rapidly over the past few years to meet the need for omni-channel sales, reduce supply chain delays, and ensure in-store shelf availability, as accelerated by the COVID-19 pandemic. About 35 billion UHF RFID tag chips were sold last year, up nearly 30 percent from 20 billion a year before, according to RAIN Alliance Market Research.

The RAIN Alliance report found that about 70 percent of the 30 billion label IC sold in 2021 were for clothing, footwear and other retail products.

Of the other 30% of sales, the study found that of the other 30% of sales, food-based products were growing, such as those used in fast food restaurants, using the technology at a 25% higher rate than the previous year. The company noted increased demand in the automotive and pharmaceutical industries.

What is the rapid growth of demand for UHF RFID products?

Avery Dennison Smartrac is one of the largest suppliers of the technology. Melo says it sees huge growth opportunities. As we drive adoption in new areas such as food and logistics and continue to lead in the apparel industry, we expect the demand for RFID and digital ID technologies to continue to grow in the Americas.

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The company owns an existing plant in Juarez, Mexico, which Melo said is also significantly expanding its capacity. The Smartrac will now operate nine production sites worldwide. In addition to Juarez, the company has made a small expansion in other smaller production sites.

Melo said the Avery Dennison Smartrac has embarked on a clear growth trajectory to drive the adoption of RFID and digital ID technology in multiple areas around the world. He added that the latest investment is the basis for enabling the company to meet market demand for the next few years.

What is the UHF RFID factory's future plan?

In addition, Avery Dennison plans to establish an I. Lab innovation center at the plant to showcase its latest development results and existing use cases in multiple industries. Existing I. Labs, in Brazil, China, India, the Netherlands, South Korea and the United States, show the possibility of digital recognition solutions to unlock a more connected world, Melo said.

rfid tags manufacturer

Elsewhere, the lab offers visitors hands-on experiences to help potential or existing customers find ways to manage retail apparel inventory using the technology or track products in the cosmetics, pharmaceutical, automotive and aviation industries.

Melo said the company chose to build its largest RFID facility in Mexico due to its strategic location, proximity to customers, availability of a highly qualified workforce, and cross-collaboration with the company’s sister businesses as well as existing infrastructure.


In the long run, Avery Dennison intends to build an ecosystem for RFID solution providers in the field. Melo said that our goal is to build a new IoT cluster in the region. There, customers, suppliers and local governments are able to increase productivity, quickly innovate and expand into current or new markets.

The company works with the state of Querétaro and its capital, San Diego de Querétaro, to develop new jobs at the plant and provide training, infrastructure, recruitment and supply or development.

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