To further improve efficiency and strengthen the competitiveness of its tissue operations, SCA has decided to implement restructuring measures at its tissue plants in Hondouville and Saint-Etienne-du-Rouvray, France.
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 500 million, of which about SEK 470 million will be recognized as an item affecting comparability in the 3Q 2016. The remaining costs will be recognized as an item affecting comparability in the 4Q 2016. Of these costs, approximately SEK 340 million is expected to affect cash flow.
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products.
