SCA has reached an agreement to sell its Italian Pratovecchio facility and paper machine to Cartiera Carma. The transaction will not result in neither capital gain nor capital loss.
The agreement follows an announcement in March 2009 aimed at improving supply-chain operations in Italy. A concentration of resources to nearby Lucca was decided and implemented. At that stage, a closure of the Pratovecchio paper machine was discussed. However, SCA has instead reached an agreement to sell the property and paper machine to Cartiera Carma, a privately-owned company based in Italy.
The paper machine has a capacity of approximately 20,000 tonnes per year, and the 24 employees currently working in paper making will continue their employment. The transaction will become final before the end of December 2009.