SCA to Close Tissue Production Plant in France
Print this Article | Send to Colleague
As part of SCA’s (Sweden) ongoing cost-savings program related to the acquisition of Georgia-Pacific’s (Atlanta, Ga., USA) European tissue operations, SCA will close the tissue production plant in Saint-Cyr-en-Val, France. The production plant has an annual capacity of 35,000 metric ons. Production will be discontinued this October.
The restructuring costs for the closure of the production plant are expected to amount to approximately SEK 480 million, of which about SEK 380 million will be recognized as an item affecting comparability in the third quarter of 2015. The remaining SEK 100 million will be recognized as an item affecting comparability in 2016. Of the restructuring costs, approximately SEK 260 million is expected to affect cash flow.
Total cost savings related to the acquisition of Georgia-Pacific’s European tissue operations are expected to amount to EUR 125 million upon full effect in 2016. Cost savings corresponding to approximately EUR 95 million on an annualized basis had been achieved in the second quarter of 2015.
The cost-savings program related to the acquisition of Georgia-Pacific’s European tissue operations is one of three efficiency programs launched by SCA in 2012. The other two programs have been concluded.
