The firm hopes the new division will increase its existing distribution system by marketing RFID inlays and tags to its current label convertor customers.

A variety of labelling applications has already been developed, with the firm planning to double its spend in the RFID field during this year.

The company also plans to undertake a number of pilot projects with leading retailers and consumer products companies.

Mathew Melis, who was previously RFID and speciality converting vice-president, will head the new unit. Avery Dennison is a leading producer of pressure sensitive technologies and self-adhesive products and label materials.