SCA closes its tissue production plant in the US

SCA announced closure of a tissue production plant in Flagstaff, Arizona, in the US. Production will be discontinued in June 2017.

According to the annoucement, the closure of the Flagstaff tissue production plant is part of SCA’s Tissue Roadmap and is aligned with the company’s strategy to optimize the geographic production footprint to drive cost and capital efficiency and further increase value creation in the Professional Hygiene business area.

The restructuring costs for the closure are expected to amount to approximately SEK 250 million and will be recognized as an item affecting comparability, mainly taken in the second quarter of 2017. Approximately SEK 40m of these costs are expected to impact cash flow.

The Flagstaff tissue production plant has production capacity of 55ktpa for the Professional Hygiene business.


Earlier SCA informed SCA informed that the last day for trading in the SCA share with the right to receive distribution of shares in Essity would be Friday, June 9, 2017.

About SCA:

The company 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 and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 46,000 employees. Sales in 2015 amounted to more than SEK 115 billion (EUR 12.4 billion). SCA has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm.

Source: Woodbizforum