As part of SCA’s ongoing cost-savings program related to the acquisition of Georgia-Pacific’s European tissue operations, SCA will close the tissue production plant in Saint-Cyr-en-Val, France. The production plant has an annual capacity of 35,000 tons. Production will be discontinued in October 2015, as the company says in the press release received by Lesprom Network.
The restructuring costs for the closure of the production plant are expected to amount to approximately SEK 480 million ($56.4 million), of which about SEK 380 million ($44.6 million) will be recognized as an item affecting comparability in the 3Q 2015. The remaining SEK 100 million ($11.7 million) will be recognized as an item affecting comparability in 2016. Of the restructuring costs, approximately SEK 260 million ($30.5 million) is expected to affect cash flow.
Total cost savings related to the acquisition of Georgia-Pacific’s European tissue operations are expected to amount to Euro 125 million upon full effect in 2016. Cost savings corresponding to approximately Euro 95 million on an annualized basis had been achieved in the 2Q 2015.
SCA is a leading global hygiene and forest products company.