Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Supply Chain

SCA Closes US Tissue Production Plant To Improve Efficiency

SCA, the Swedish paper-product company, has announced that it is closing its US tissue production plant in Flagstaff, Arizona.

The decision was made to ‘further improve efficiency and strengthen the competitiveness for the professional hygiene business in North America’.

The closure is part of the company’s strategy to ‘optimise the geographic production footprint to drive cost and capital efficiency, and further increase value creation in the professional hygiene business area’.

Production Plant

The Flagstaff tissue production plant has an annual capacity of 55,000 tonnes for the professional hygiene business. Production will be discontinued in June 2017.

Restructuring costs amount to SEK 250 million (€25 million), and will be recognised as an item affecting comparability to be taken in the second quarter of 2017. SCA reports that approximately SEK 40 million (€4 million) of these costs are expected to impact cash flow.

SCA recently announced that it is increasing its ongoing expansion project at the Östrand pulp mill. The company invested €800 million in the mill, which is planned to start production in June 2018.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days