SCA to Invest More Than SEK 800 Million in Machine Improvementsm

Zurich, Switzerland, 06 September 2011 -- SCA will invest SEK 460 million in a tissue machine upgrade in the United States. A decision has also been made to rebuild a paper machine in Ortviken for the manufacture of improved newsprint, an investment totalling SEK 350 million.

To meet demand for premium products in the U.S. market, SCA has decided to invest in an upgrade of an existing tissue machine. The machine today has an annual capacity of 70,000 tons, which will remain unchanged. Production is estimated to commence during late 2012 or early 2013.

A newsprint paper machine in Ortviken, Sundsvall, will be rebuilt to allow production of improved newsprint. The machine’s annual capacity currently is 245,000 tons, which will increase marginally by making it possible to produce higher density paper at the same speed. At the same time, capacity for pulp bleaching and water treatment will increase.

The rebuilt machine in Ortviken will likely commence operation during the third quarter of 2012.