SCA to Invest SEK 160 Million to Strengthen its Tissue Business in UK

Specifications:

Name:

SCA to Invest SEK 160 Million to Strengthen its Tissue Business in UK

Location:

United Kingdom

Company:

SCA

Estimated Cost:

SEK 160 Million

Source:

www.sca.com

Introduction:

SCA plans to invest in a through-air drying (TAD) machine at its tissue plant in Skelmersdale to meet the growing demand for high-quality tissue and strengthen the product offering in the UK.

Features:

Following the investment at the Skelmersdale tissue plant of approximately SEK 160m, the production capacity of TAD mother reels will be 28,000 tons. SCA has also decided to close an older tissue machine in Stubbins and signed an agreement to divest its tissue plant in Chesterfield to Sidcot Group Limited.

These measures are part of SCA´s Tissue Roadmap and are aligned with the company’s strategy to streamline production and secure capacity for future growth to increase value creation in the Tissue business area. Both initiatives are subject to customary consultation with employee representatives.

The cost for closing the older tissue machine in Stubbins, with an annual production capacity of 20,000 tons, is expected to amount to approximately SEK 120m. The cost will be recognized as an item affecting comparability, mainly taken in the first quarter of 2017.