More efficient production structure increases profitability within baby diapers

More efficient production structure increases profitability within baby diapers

SCA has initiated a project to close its Personal Care factory in Linselles,
France as well as a personnel reduction in the company's Hoogezand factory in
the Netherlands.

To enhance efficiency and increase competitiveness of SCA's baby diaper business
in Europe, the company plans to move its retail brand production from Linselles
to Olawa in Poland. Olawa would thus become the center of production for retail
brand baby diapers. As a consequence, a process to close SCA's Linselles factory
has been initiated. The closure of the plant is planned for mid 2011, affecting
about 280 employees. At the same time an efficiency project in the Hoogezand
factory will affect approximately 50 employees until the end of 2010.

Thomas Wulkan, President SCA Personal Care Europe: “These measures will result
in an improved cost position for our baby diapers. This is particularly
important for our retail brand business, which has been under heavy price
pressure in the past years.” 

Total costs for SCA's European efficiency projects are estimated at 60 MEuro of
which write off of assets amounts to 10 MEuro. The costs will be booked in the
second quarter 2010. 

The yearly savings are estimated at 15 MEuro with full effect from third quarter
2011.  


Stockholm 25 March 2010


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Pär Altan, Vice President Media Relations, +46 8 788 52 37
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30