SCA to invest in incontinence care, tissue and solid-wood products

SCA to invest in incontinence care, tissue and solid-wood products

In order to meet rising demand, SCA is investing to boost its capacity in the
European incontinence care segment and the tissue segment in Latin America. SCA
will also invest in an automatic sorting system at the sawmill in Tunadal.


SCA is the world-leading provider of incontinence care products. To keep pace
with powerful growth in demand for heavy incontinence products, SCA is investing
in a new production line for TENA Pants at the plant in Hoogezand and a new line
for TENA Flex at the plant in Gennep, both in the Netherlands. 

The investment in Hoogezand is primarily aimed at supporting strong growth in
Europe, where sales in the Pants segment are outpacing global growth in the
segment. The total investment in Hoogezand will amount to EUR 16.7m, and the
plant is scheduled to go into operation at the end of 2009. 

The investment in Gennep will amount to EUR 19.8m and is also designed mainly to
satisfy rising growth in Europe. The Flex products are sold primarily to
hospitals and nursing homes and the segment is most developed in Europe, where
SCA is the market-leader. The new production line will be started up in the
third quarter of 2009. 

An automatic sorting system will be installed at the sawmill in Tunadal. This
investment, corresponding to EUR 22.6m, will both reduce production costs and
boost the production volume while at the same time enhancing quality and
increasing the yield of finished products from the consumed timber volume. The
main markets for Tunadal's products are Scandinavia, the UK and France. 

SCA's operations in Colombia, Ecuador, Peru and Venezuela are conducted through
the 50%-owned venture capital company Productos Familia S.A., which sells
tissue, baby diaper, feminine care and incontinence care products. In response
to a robust sales trend for tissue products, the company is now investing in a
new tissue machine. SCA's share of the investment cost is USD 32.5m. The
investment will take place entirely within the framework of Productos Familia
and will not require any new shareholder contributions.  


Stockholm, 29 February 2008  


For further information please contact
Bodil Eriksson, SVP Corporate Communications, +46 8 788 52 34
Petter Tiger, Press & Media Officer, +46 8 788 53 62


NB
This information is such that SCO must disclose in accordance with the
Securities Market Act. 



SCA is a global consumer goods and paper company that develops and produces
personal care products, tissue, packaging solutions, publication papers and
solid-wood products. Sales are conducted in some 90 countries. SCA has many
well-known brands, including the global brands Tena and Tork. Sales in 2007
amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000
employees. More information at www.sca.com