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SCA Expaning Tissue Capacity in Russian and Germany

Stockholm, Sweden, 29 April 2011 -- To further reinforce and strengthen its position in the Russian tissue market, SCA has decided to invest approximately SEK 1.2 billion (approximately EUR 130 million) in a second tissue machine in Sovetsk, Russia. The new tissue machine will have a capacity of 60,000 tons annually based on virgin fiber. Production is scheduled to commence in 2013.

SCA also is investing approximately SEK 1.1 billion (approximately EUR 120 million) in a new tissue machine in Kostheim, Germany. This investment is being made to meet increased demand, primarily for away-from-home tissue products. The new tissue machine will have a capacity of 60,000 tons annually and production is scheduled to commence in 2013.

To increase production capacity and reduce costs, SCA will invest approximately SEK 300 million (approximately EUR 30 million) in improvements to its Bollsta sawmill in Sweden. The improvements will include two new biofuel boilers, increased drying capacity, and an upgrade of the saw line. Through these investments, production capacity will increase from 450,000 cubic meters to 525,000 cubic meters of sawn pine products per year. The investment enables energy production to come exclusively from the company’s own biofuel, rather than oil. The biofuel boiler is scheduled for commissioning at the end of 2012; other improvements will be commissioned successively during 2012 and 2013.


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