SCA to Build New Incontinence Products Facility in Brazil

SCA, Sweden, is set to invest approximately SEK 650 million (about $75.4 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, SCA has increased its sales and market share in Brazil. It is now the second largest company in the Brazilian market for incontinence products, with its global 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," says Magnus Groth, president and CEO of SCA.

The new production facility in Jarinu, Brazil, will replace the smaller existing plant.