SCA initiates actions to restore competitiveness of its tissue supply chain operations in Italy and France

  • Regulatory press release

In line with SCA’s overall goal to increase the efficiency in its supply chain and lower costs, SCA today announced a new supply chain structure for its tissue operations in Italy, including the closure of the Pratovecchio mill. Measures are also being taken at our plant in Orléans, France, which will improve efficiency.

After an extensive evaluation of SCA’s Italian supply chain operation, a new structure has been developed to improve performance. As a result, all finished product manufacturing for Italy, including the production for folded products, rolled products and coloured mother reels, will be consolidated in the Lucca area.

The closure of Pratovecchio mill, located in the Arezzo area and equipped with one paper machine and nine converting lines, affects 128 permanent employees in Italy.

Late 2007, SCA announced a restructuring program with the aim of reducing some 100,000 tonnes of capacity in total by 2010. See further press release, dated December 19, 2007.

In addition to the new supply chain set-up for Italy, SCA will restructure its Orléans mill located in France to improve competitiveness. As a result, 44 positions are affected.

Stockholm, March 27, 2009

For further information please contact
Pär Altan, VP Media Relations, +46 8 788 52 37
Johan Karlsson, VP Investor Relations, +46 8 788 51 30

This information is such that SCA must disclose in accordance with the Securities Markets Act. The information was submitted for publication on March 27 at 16.30.