Against the backdrop of the prevailing economic and currency situation, SCA isintroducing a comprehensive program to enhance the efficiency of its forestproducts operation. The program will generate annual earnings improvements ofSEK 1,300m with full effect from 2015.
Against the backdrop of the prevailing economic and currency situation, SCA isintroducing a comprehensive program to enhance the efficiency of its forestproducts operation. The program will generate annual earnings improvements ofSEK 1,300m with full effect from 2015.The total cost of the program is SEK 370m, of which SEK 250m is cash flowimpacting and SEK 120m comprises impairment losses. Of the total costs, SEK 175mwill be charged to profit for the fourth quarter and will be recognized as itemsaffecting comparability. The remaining SEK 195m will be charged to profit forthe first six months of 2013.
Actions include the previously announced closures of the sawmills in Vilhelminaand Holmsund, and cutbacks at Ortviken paper mill, SCA Transforest’s terminalsin Sundsvall and Umeå, and at SCA’s R&D Center. About 200 positions areaffected, the majority of which have already been announced.
The program includes a structured plan to reduce fixed and variable costs,income improvements by way of increased production and streamlining activities,and a changed product and market mix. This will be achieved through improved rawmaterial yield at the sawmills, higher productivity in harvesting activities, anincreased share of value-added publication papers and a larger share ofcontainer transportation.
NB:This information is such that SCA must disclose in accordance with theSecurities Markets Act and/or the Financial Instruments Trading Act. Theinformation was submitted for publication on December 19, 2012, at 08.00 CET.SCA is a leading global hygiene and forest company that develops and producespersonal care products, tissue and forest products. Sales are conducted in some100 countries. SCA has many well-known brands, including the global brands TENAand Tork. Sales in 2011 amounted to SEK 106 billion (EUR 11.7 billion). SCA hasapproximately 37,000 employees. More information at www.sca.com