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SCA investing in expanded capacity for tissue

May 3 2011  SCA is investing in expanded tissue capacity in Russia and Germany, and in solid-wood products in Sweden. The investments will total approximately  2.6 billion Kronor (approximately 290 million Euros) and include two new tissue machines.

There is favourable growth in the Russian tissue market, and SCA is the leading player with strong brands, such as Tork and Zewa. To further reinforce and strengthen the market position, a decision has been made to invest approximately 1.2 billion Kronor (130 million Euros) in a second tissue machine at SCA's mill in Sovetsk, Russia. The milla was inaugurated last year and has today one tissue machine. The new tissue machine will have a capacity of 60,000 tons annually, and production is based on virgin fiber. Production is scheduled to commence in 2013.SCA is also investing approximately 1.1 billion Kronor (120 million Euros) in a new tissue machine in Kostheim, Germany. This investment is being made to meet increased demand, primarily for Away-From-Home tissue products (AFH). The new tissue machine will have a capacity of 60,000 tons annually and production is scheduled to commence in 2013.SCA also investa approximately 300 million Kronor (30 million Euros) in Bollsta sawmill, Sweden.“Through these investments, we will enhance our capacity, efficiency and profitability in markets that are important to us,” says Jan Johansson, CEO of SCA.

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