Investment in kraftliner in Munksund

2011-12-13

SCA will invest a total of SEK 540m to strengthen kraftliner production in Munksund, Piteå, Sweden. The intention is to upgrade the paper machine and refurbish the soda-recovery boiler.

Munksund paper mill - SCA

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The main aim of the investment is to increase production of the share of value-added products, such as White-Top Kraftliner, which, for example, is used for packaging of fast-moving consumer goods with high-quality print.

As a result of the SEK 540m investment, Munksund will be able to increase its total annual kraftliner capacity to 415,000 tonnes from the current level of 360,000 tonnes. The bulk of the investment, SEK 400m, will be used to upgrade the paper machine. The remaining SEK 140m will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

The upgraded equipment is expected to be fully operational during 2013.

“The investment facilitates increased production of White-Top Kraftliner, a strong speciality paper for the corrugated-board industry which is experiencing a high growth rate. The investment is in line with the company’s strategy; which is to increase production and sales of products and services with a higher degree of refinement that add value for our customers,” says Jan Johansson, SCA’s President and CEO.

Stockholm, Sweden, 13 December 2011

For further information, please contact:
Jörgen Olsson, Press and Media Officer, +46 (0)8-788 51 29
Jessica Ölvestad, Investor Relations Manager, +46 (0)8-788 52 82

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 13 December at 8:00 AM CET.

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