SCA to close French plant
To enhance efficiency and increase competitiveness of SCA’s baby diaper business in Europe, the company plans to move its retail brand production from Linselles, France, to Olawa, Poland. Olawa would thus become SCA's center of production for retail brand baby diapers.As a consequence, a process to close SCA’s Linselles factory has been initiated. The closure of the plant is planned for mid 2011, affecting about 280 employees. At the same time an efficiency project in the Hoogezand factory in the Netherlands will affect approximately 50 employees until the end of this year.Thomas Wulkan, President SCA Personal Care Europe, says: “These measures will result in an improved cost position for our baby diapers. This is particularly important for our retail brand business, which has been under heavy price pressure in the past years.”Total costs for SCA’s European efficiency projects are estimated at 60 million Euros, of which write off of assets amounts to ten million. The costs will be booked in the second quarter 2010.The yearly savings are estimated at 15 million Euros with full effect from the autumn 2011.