SCA to close production plant in France
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.
The restructuring costs for the closure of the production plant are expected to amount to approximately SEK 480m, of which about SEK 380m will be recognized as an item affecting comparability in the third quarter of 2015. The remaining SEK 100m will be recognized as an item affecting comparability in 2016. Of the restructuring costs, approximately SEK 260m 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 EUR 125m upon full effect in 2016. Cost savings corresponding to approximately EUR 95m on an annualized basis had been achieved in the second quarter of 2015.
The cost-savings program related to the acquisition of Georgia-Pacific’s European tissue operations is one of three efficiency programs launched by SCA in 2012. The other two programs have been concluded.
NB: This information is such that SCA must disclose in accordance with the Securities Markets Act or the Financial Instruments Trading Act. Submitted for publication on August 19, 2015, at 19:00 CET.
For additional information please contact:
Johan Karlsson, VP Investor Relations, 46 8 788 51 30
Karl Stoltz, Media Relations Manager, 46 8 788 51 55
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK 104bn (EUR 11.4bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.