STOCKHOLM, June 7, 2017 /PRNewswire/ -- To further
improve efficiency and strengthen the competitiveness for the
Professional Hygiene business in North
America, SCA has decided to close the tissue production
plant in Flagstaff, Arizona, in
the US.
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 Flagstaff tissue production
plant has an annual capacity of 55,000 tons for the Professional
Hygiene business. Production will be discontinued in June 2017.
The restructuring costs for the closure are expected to amount
to approximately SEK 250m 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.
SCA, with the leading global brand Tork, is the second largest
player in the US professional hygiene market. The US is the Group's
largest market, based on net sales in 2016, and is highly
prioritized by SCA.
CONTACT:
For additional information please contact:
Johan Karlsson, Vice President
Investor Relations, 46 (0)8 788 51 30
Karl Stoltz, Media Relations
Manager, 46 (0)8 788 51 55
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SCA to close tissue
production plant in the US
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SOURCE SCA