SCA to close production plant in France

  • Regulatory press release

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