SCA enhances its organization and invests

SCA is a global hygiene and forest products company with about 85% of its sales
derived from its hygiene operations. To further intensify the focus on the
Group’s two operations, SCA has decided initiate a dividing of the Group into
two divisions: a Hygiene division and a Forest Products division. In relation to
the Forest Products division, all forest industry and forest land currently
owned by SCA will be merged into one division. A decision has also been made to
invest in increased capacity for pulp production in the forest products
operation.
“SCA is a global hygiene and forest products company in which we work
continuously to enhance the respective operations. The enhancement of the
organization and the investment in increased pulp production will secure the
long-term competitiveness of the businesses,” says Magnus Groth, President and
CEO of SCA.

The Forest Products division will encompass all forest industry operations and
all forest land currently owned by SCA. The work to realize this consolidation
will now begin. There are significant synergies between the forest industry and
the ownership of forest land. SCA’s forest products operation has a well
-integrated supply chain with production facilities concentrated in Northern
Sweden in close proximity to its forest holdings.
As of January 1, 2017, the Forest Products division will expand its quarterly
financial reporting.

To satisfy the growing demand for pulp, SCA has decided to invest in increased
capacity for pulp production at the Östrand pulp mill in Timrå, Sweden. The
annual production capacity of bleached sulphate pulp will increase from the
current level of approximately 430,000 tons to about 900,000 tons. The
investment will amount to about SEK 7.8bn over a three-year period. Production
is expected to commence in 2018.

“A cohesive forest products operation in a single division further highlights
the value created and optimizes synergies between the forest industry and
ownership of forest land. Over time, the investment in Östrand will increase
sales and competitiveness and create a world-class cost position and higher
margins,” says Magnus Groth, President and CEO of SCA.

SCA has also decided to enhance the hygiene operation’s organization. Please see
separate press release.

Teleconference
A teleconference for the media, investors and analysts will be held today at
9:00 a.m. with President and CEO Magnus Groth.
To join the teleconference, please dial: +44 (0)20 7162 0077, +1 334 323 6201 or
+46 (0) 8 505 201 10.


NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act or the Financial Instruments Trading Act. The information
was submitted for publication on August 28, 2015, at 8:00 a.m. CET.
For additional information please contact:

Linda Nyberg, VP Media Relations and Online Communications, +46 8 788 51 58
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
SCA is a leading global hygiene and forest products company. The Group develops
and produces sustainable personal care, tissue and forest products. Sales are
conducted in about 100 countries under many strong brands, including the leading
global brands TENA and Tork, and regional brands, such as Libero, Libresse,
Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest
owner, SCA places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK
104bn (EUR 11.4bn). SCA was founded in 1929, has its headquarters in Stockholm,
Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit
www.sca.com.