SCA continues to improve efficiency of tissue production in Europe

To further improve efficiency and strengthen the competitiveness of its tissue operations, SCA has decided to implement restructuring measures at its production plants in Hondouville and Saint-Etienne-du-Rouvray, France. The restructuring measures are aligned with the company’s strategy to improve production efficiency in order to drive cost and capital efficiency and further increase value creation in the Tissue business area.

The restructuring measures include the closure of the oldest tissue machine in Hondouville and personnel reductions at Hondouville and Saint-Etienne-du-Rouvray. In Hondouville, where SCA manufactures Away-from-Home tissue, production will be concentrated to more efficient machines, thus enabling production levels to be maintained. In Saint-Etienne-du-Rouvray, SCA has decided to divest production of tabletop products for consumers to focus on the plant’s core operation: kitchen roll and toilet paper production. The measures will lead to lower production costs and increased competitiveness. Total costs are expected to amount to approximately SEK 500m, of which about SEK 470m will be recognized as an item affecting comparability in the third quarter of 2016. The remaining costs will be recognized as an item affecting comparability in the fourth quarter of 2016. Of these costs, approximately SEK 340m is expected to affect cash flow.

France is a prioritized market for SCA and is the company’s fourth-largest market based on sales in 2015.

SCA (STO:SCAA) (STO:SCAB) is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

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