SCA has decided to close the tissue production plant in Flagstaff, Arizona, in the US, as the company said in the press release received by Lesprom Network.
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 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 ($28.7 million) and will be recognized as an item affecting comparability, mainly taken in the 2Q 2017. Approximately SEK 40 million ($4.6 million) of these costs are expected to impact cash flow.
SCA is a leading global hygiene and forest products company that sustainably develops, produces and sells personal care, tissue and forest products.
