SCA to close tissue production plant in France

21 Aug '15

1 min read

Svenska Cellulosa Aktiebolaget (SCA), a leading global hygiene and forest products company, will soon shut the tissue production plant located in Saint-Cyr-en-Val, France. The plant having production capacity of 35,000 tons will stop production in October this year.

The restructuring costs for closing the production plant are estimated to amount to SEK 480 million ($563 million), of which around SEK 380 million ($447 million) will be recognised as an item affecting comparability in the third quarter, stated a press release from the company. An approximate sum of SEK 260 million ($305 million) will be affecting the cash flow.

The total cost savings relevant to the acquisition of Georgia-Pacific's European tissue operations are expected to amount to €125 million ($139.15 million) upon full effect in 2016. The cost savings corresponding to approximately €95 ($105.74 million) million on an annualised basis have been achieved in the second quarter of 2015.

SCA is one of the world's largest companies amongst personal care producers, the world's third-largest supplier of tissue and one of Europe's most profitable producers of forest products. (HO)

Fibre2Fashion News Desk – India