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SCA to close tissue production plant in the US
To further improve efficiency and strengthen the competitiveness for the Professional Hygiene business in North America, SCA has decided to close the tissue production plant in Flagstaff, Arizona, in the US.
The closure of the Flagstaff tissue production plant is part of SCA's 'Tissue Roadmap' and is aligned with the company's strategy to optimise the geographic production footprint to drive cost and capital efficiency and further increase value creation in the professional hygiene business area.
The Flagstaff tissue production plant has an annual capacity of 55,000 tons for the Professional Hygiene business. Production will be discontinued in June 2017.
The restructuring costs for the closure are expected to amount to approximately SEK 250m and will be recognised as an item affecting comparability, mainly taken in the second quarter of 2017. Approximately SEK 40m of these costs are expected to impact cash flow.
SCA, with the global brand Tork, is the second largest player in the US professional hygiene market. The US is the Group's largest market, based on net sales in 2016, and is highly prioritised by SCA.
Image courtesy of the Arizona Daily Sun
8th June 2017