SCA Hygiene Products makes organizational changes forimproved competitiveness

SCA Hygiene Products makes organizational changes forimproved competitiveness When creating the new SCA Hygiene Products organization after the merger of SCA Mölnlycke and SCA Hygiene Paper a year ago, the two head offices were merged but the divisions were to a large extent kept intact. Next step is now being taken. The objectives are to get an organization that better supports the strategy, increases the customer focus, is lean, understandable, efficient and speedy, helps the company to fulfil its values and improves profitability. The two Consumer divisions (Tissue and Baby diapers/Feminine hygiene products) are merged into one Consumer Products division. The units manufacturing Tissue and R&D Tissue report to Consumer Products division and also serve the Away From Home division. Main objectives are to continue dedication of mills and fulfillment of network targets. The two R&D organizations in Fluff (R&D Incontinence products and R&D Baby diapers/Feminine hygiene products) are merged into one R&D Fluff organization reporting to the head of the Incontinence products division and also serve Consumer Products division. Main objective is to further develop the co- ordination already established between R&D Incontinence and R&D Baby diapers/Feminine hygiene products. As to the market approach, the intention is to build up a regional organization for each of the three divisions for local sales and marketing as business is becoming more and more europeanized/regionalized. A process to start this change will be initiated shortly. Kurth Augustson is appointed President of the merged Consumer Products division. Reinhold O. Schadler is appointed deputy President of Consumer Products division in charge of all technology functions within Consumer Products division, i.e. R&D Tissue, Manufacturing Tissue, Manufacturing Baby diapers/Feminine hygiene products and International Distribution Centers. Michael Boris-Möller is appointed Senior Vice President Global Product Management & Marketing including product strategy, assortment, product development priorities, brand strategy, private label strategy and marketing. Stockholm, October 2, 1998 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Corporate Communications For further information, please contact Alfred H.Heinzel, President, SCA Hygiene Products. Phone: +49 - 8035 8 02 01