SCA to part with hygiene products site in France

Thursday, Apr 16, 2015

SCA will give up its French Saint-Cyr-en-Val site in France and cease production of hygiene products in October. The site has been struggling with difficult market conditions for months and feels it is no longer competitive.

SCA has announced that it will part with its French site for hygiene products in Saint-Cyr-en-Val near Orléans. The company informed that it plans to discontinue operations in October this year. Production is to be relocated from Saint-Cyr-en-Val to other SCA mills in France. Paper production is to be transferred to Gien and converting operations to Le-Theil-sur-Huisne, according to SCA.

SCA is currently seeking a successor to keep the mill running. Details regarding possible suitors or future activities will be disclosed in due time, said the company. In case of a closure, 119 employees stand to lose their jobs.

At Saint-Cyr-en-Val, SCA produces toilet paper and kitchen towels for the private label market. Market conditions in France have been very difficult for this segment in recent months, a company spokesperson said, particularly highlighting the development of selling prices as well as overcapacities on the market. In addition, the paper machine has a width of 3.5 m while the standard for tissue in Europe is 2.8 m. The paper therefore needs to be cut to size resulting in a lot of wastage, explained the spokesperson.

Under these circumstances and given the difficult market situation, the company considers itself no longer competitive and unable to operate profitably. According to the spokesperson, the mill has repeatedly been taking downtime in the recent past. Since the beginning of the year, paper production only runs one week per month, he reported. Converting operations are also idle for 10 days per month.

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