SCA is set to invest approximately SEK650m (€70m) in a new production facility in Jarinu, Brazil for the manufacture of incontinence products.
Production is scheduled to commence in the second half of 2016, according to SCA CEO Magnus Groth. The new mill will replace a smaller facility in Brazil and is expected to contribute to the company's profit from 2017.
Through an acquisition made in 2011, SCA had established a presence in the Brazilian market for incontinence products with a market share of circa 10 %, said Mr Groth. Since then, SCA had increased its market share in Brazil to 23 %. In order to satisfy the growing demand, the company had had to resort to imports.
Therefore SCA now wants to establish a bigger local production, but did not publish the new mill's planned capacity.
SCA is the second largest company in the Brazilian market for incontinence products, with Brazil being the third largest retail market in the world for these products. In 2014, the company's sales in Brazil amounted to SEK 514m (€55m).