SCA launches efficiency program at Forest Products

Against the backdrop of the prevailing economic and currency situation, SCA is introducing a comprehensive program to enhance the efficiency of its forest products operation. The program will generate annual earnings improvements of SEK 1,300m with full effect from 2015.

Against the backdrop of the prevailing economic and currency situation, SCA is introducing a comprehensive program to enhance the efficiency of its forest products operation. The program will generate annual earnings improvements of SEK 1,300m with full effect from 2015.

The total cost of the program is SEK 370m, of which SEK 250m is cash flow impacting and SEK 120m comprises impairment losses. Of the total costs, SEK 175m will be charged to profit for the fourth quarter and will be recognized as items affecting comparability. The remaining SEK 195m will be charged to profit for the first six months of 2013.

Actions include the previously announced closures of the sawmills in Vilhelmina and Holmsund, and cutbacks at Ortviken paper mill, SCA Transforest’s terminals in Sundsvall and Umeå, and at SCA’s R&D Center. About 200 positions are affected, the majority of which have already been announced.  

The program includes a structured plan to reduce fixed and variable costs, income improvements by way of increased production and streamlining activities, and a changed product and market mix. This will be achieved through improved raw material yield at the sawmills, higher productivity in harvesting activities, an increased share of value-added publication papers and a larger share of container transportation.

Stockholm, December 19, 2012

For additional information, please contact:

Jessica Ölvestad, Press and Media Officer +46 8 788 52 82

Louise Tjeder, Director Investor Relations +46 8 788 51 62

NB:This information is such that SCA must disclose in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on December 19, 2012, at 08.00 CET.

SCA is a leading global hygiene and forest company that develops and produces personal care products, tissue and forest products. Sales are conducted in some 100 countries. SCA has many well-known brands, including the global brands TENA and Tork. Sales in 2011 amounted to SEK 106 billion (EUR 11.7 billion). SCA has approximately 37,000 employees. More information at www.sca.com