SCA to Close, Sell Tissue and Towel Operation in France
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SCA, Sweden, reports that it will close and sell its Saint-Cyr-en-Val hygiene products mill in France (near Orléans) and cease production of hygiene products this October. The mill reportedly has been experiencing difficult market conditions some time and currently is not competitive.
The company will transfer production from Saint-Cyr-en-Val to other SCA mills in France. Paper production is to be transferred to Gien and converting operations to Le-Theil-sur-Huisne, according to SCA. The company is said to be looking for a "successor" to take over the mill and keep it operating. More information in this regard will be released in the near future, the company said. If the mill closes, 119 employees will be affected.
The Saint-Cyr-en-Val operation produces toilet paper and kitchen towels for the private label market. Market conditions in France have been very difficult for this segment in recent months, SCA noted, particularly in regard to selling prices and market overcapacities. Also, the mill’s tissue machine is 3.5 meters wide, while the standard for tissue in Europe is 2.8 meters wide. This requires that e paper be cut to size, resulting in significant wastage.
