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SCA begins construction of third manufacturing facility
11
Dec '08
Construction of a brand new Personal Care factory in the Russian town of Veniov has begun with a groundbreaking ceremony held at the green field site last week.

The Veniov plant manager Andrey Kudryashov shows a model of the future factory.The Veniov factory will be SCA's first Personal Care production plant in Russia, but already SCA's third hygiene manufacturing facility in the country.

The other two hygiene plants are tissue mills located in the neighboring Russian town of Sovetsk (where the first construction phase of a brand new tissue mill was recently completed) and in Svetogorsk.

"Our goal is to leverage the growing ability of Russian consumers to purchase and use personal hygiene and health care products," explained Annika Nordin, VP Product Supply Personal Care Europe, at the event.

She continues, "Russia is currently behind Western Europe and America in terms of consumption of such products, but market demand is rising quickly, which is why local production in this market segment has high potential for the business."

Vyacheslav D. Dudka, governor of the Tula region, affixes a commermorative plaque on a granite stone.The groundbreaking ceremony kicked-off with SCA Personal Care Veniov plant manager Andrey Kudryashov revealing an architectural model of the future Veniov factory and describing the setup of the new manufacturing site to government representatives from Russia's Tula Region and Veniov District.

Several special guests - including the Governor of the Tula Region, Vyacheslav D. Dudka – were then invited to affix a commemorative plaque onto a granite stone erected at the construction site. Following the traditional Russian custom, a priest was also present to bless the construction site.

"SCA's sales of hygiene products in Russia have increased tremendously over the past years, and there is a lot of growth potential for both our personal care brands TENA, Libero and Libresse, as well as our tissue brands Tork and Zewa. Establishing a strong production base in Russia will further strengthen our market position by helping us to build an efficient and competitive business," concludes Annika Nordin.

The SCA Personal Care Veniov factory will produce baby diapers and incontinence care products, and the first phase of construction is expected to be completed by the turn of the year 2009/2010.

SCA

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