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SCA discontinues publication paper and invests in pulp production

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SCA has announced its decision to cease production of publication paper, redirecting SEK 1.45 billion towards the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken site. This strategic shift follows consultations with employee representatives affecting approximately 800 employees. CEO Ulf Larsson emphasized the declining market for publication paper and expressed commitment to finding optimal solutions for affected staff. The move aligns SCA with markets demonstrating healthy growth prospects.

Positive
  • Investment of SEK 1.45 billion in CTMP production at Ortviken.
  • Strategic shift away from declining publication paper market.
Negative
  • Closure of publication paper production affects approximately 800 employees.

STOCKHOLM, Sept. 11, 2020 /PRNewswire/ -- Today, SCA decided to discontinue the production of publication paper and to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken industrial site in Sundsvall. The decision has been preceded by consultations with employee representatives.

The proposed restructuring plan for Ortviken paper mill was announced on August 26. Following the conclusion of negotiations with employee representatives regarding the closure of publication paper production, consultations will now commence regarding the consequences of this closure for the employees. Approximately 800 employees are affected, most of whom are located at the Ortviken paper mill.

"Publication paper is a product with a declining market and we now entirely leave this product area, this enables us to focus on products with healthy growth and good prospects for the future," says Ulf Larsson, SCA's CEO. "The plans we are now carrying out will have significant impact and now, together with representatives of our employees, we will seek the best possible solutions for those affected."

For further information, please contact

Björn Lyngfelt
SVP Communications
+46 (0)70-626-82-23

The core of SCA's business is the forest, Europe's largest private forest holding. Around this unique resource, we have built  a well-developed value chain based on renewable raw material from our own and others' forests.

We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and  efficient transport solutions.

In 2019, the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 19.6bn (EUR 1.9bn).

SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com

Svenska Cellulosa Aktiebolaget SCA

Skepparplatsen 1
SE-851 88 Sundsvall, Sweden
Tel: +46-60-19-30-00
www.sca.com 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/sca/r/sca-discontinues-publication-paper-and-invests-in-pulp-production,c3192949

The following files are available for download:

https://mb.cision.com/Main/600/3192949/1305577.pdf

Press release (PDF)

 

Cision View original content:http://www.prnewswire.com/news-releases/sca-discontinues-publication-paper-and-invests-in-pulp-production-301128207.html

SOURCE SCA

FAQ

What is the main announcement from SCA on September 11, 2020?

SCA announced the discontinuation of publication paper production and a SEK 1.45 billion investment in CTMP production.

How many employees are affected by SCA's decision to cease publication paper production?

Approximately 800 employees will be affected by the closure.

What is the reason behind SCA's shift from publication paper to CTMP production?

The shift is due to the declining market for publication paper, allowing SCA to focus on products with better growth potential.

What is the financial impact of SCA's investment in CTMP production?

SCA is investing SEK 1.45 billion in CTMP production at the Ortviken site.

When was the restructuring plan for the Ortviken paper mill announced?

The restructuring plan was announced on August 26, 2020.

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