SCA to Build New Incontinence Product Plant in Brazil
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SCA, Sweden, is set to invest approximately SEK 650 million in a new production facility in Brazil for the manufacture of incontinence products. Production is scheduled to commence in 2016.
Through an acquisition made in 2011, SCA established a presence in the Brazilian market for incontinence products. Since then, the company has increased its sales and market share in Brazil. SCA is now the second largest company in the Brazilian market for incontinence products, with its global leading brand TENA and the local brand, Biofral.
Brazil, which is one of SCA's prioritized emerging markets, is the third largest retail market in the world for incontinence products.
"This investment will increase our production capacity and improve our profitability in Brazil in the long term. The investment enables us to capitalize on the growth opportunities that we can see in the Brazilian market for incontinence products and to potentially launch other product categories in the future," said Magnus Groth, president and CEO of SCA.
The new production facility in Jarinu, Brazil, will replace the smaller existing plant.
In 2014, SCA's net sales in Brazil amounted to SEK 514 million.
