SCA to acquire minority holding in Chinese tissue company Vinda

SCA to acquire minority holding in Chinese tissue company Vinda

SCA has approved the purchase of  20% of the Chinese tissue company Vinda. With
a market share of approximately 4%, Vinda is one of the four largest players
within tissue in China.

SCA's CEO Jan Åström: “Acquisition of a stake in Vinda provides a good
opportunity for SCA to establish an important position in the fast-growing
Chinese tissue market. We will then be part owner in a profitable and
fast-growing company with modern assets and a strong brand.” The acquisition
follows SCA:s strategy to grow in China.

The brand Vinda is seen as one of the strongest Tissue brands in China, the
second largest tissue market in the world. The company has a strong position in
consumer tissue, being one of the clear leaders in the market. Vinda has five
production plants in China: two in Guangdong and one in Beijing, Sichuan and
Hubei.

The purchase price is set at CNY (yuan renminbi) 366 million corresponding to
SEK 330 million. The acquisition corresponds to a CVA index of 1.15 and an
EBITDA multiple with respect to 2007 anticipated EBITDA of 9.7. As a result of
capacity expansion, the company has grown by more than 30 percent per year for
the last two years and the strong growth is expected to continue.

Economic development in China is creating enormous demand for hygiene solutions
in the AFH (Away From Home) market segment, tissue for bulk consumers. SCA is
off to a flying start due to the investments in improved hygiene in the service
sector being made by China in connection with preparations for the 2008 Summer
Olympics in Beijing and the 2010 World Expo in Shanghai. At the end of 2006, SCA
announced its establishment in the Chinese market with its global Tork brand.


Stockholm, 29 March 2007  


For further information please contact
Pär Altan, Vice President Media Relations, +46 8 788 52 37
Bodil Eriksson, Senior Vice President Communications and Investor Relations, 
+46 8 788 52 34


SCA is a global consumer goods and paper company that develops, produces and
markets personal care products, tissue, packaging solutions, publication papers
and solid-wood products. Sales are conducted in some 90 countries. SCA has
annual sales in excess of SEK 101 billion (c. EUR 11 billion) and production
facilities in more than 40 countries. SCA had approximately 51,000 employees at
the beginning of 2007. SCA shares are traded on the Stockholm, London and New
York stock exchanges. For more information, visit www.sca.com