SCA Strengthens Its Tissue Business in the UK
(London, Jan 26, 2017) SCA has announced a number of measures to meet the growing demand for high-quality tissue and strengthen the product offering in the UK.
SCA is investing about SEK 160 million in a through-air drying (TAD) machine at its tissue converting plant in Skelmersdale. Following the completion of the project, production capacity of TAD mother reels will be 28,000 tons.
SCA will close an older tissue machine in Stubbins. The machine had an annual production capacity of 20,000 tons. The cost for closing the machine is expected to amount to approximately SEK 120 million.
SCA has signed an agreement to divest its tissue plant in Chesterfield to Sidcot Group for approximately GBP 3million (approximately SEK 35 million). The facility produces mother reels but has no converting capacity. SCA said that it “will have no internal need for the type of mother reels produced at the plant.” The annual production capacity is 31,000 tons and SCA expects to close the deal in the first quarter of 2017.
In a press release, SCA said, “These measures are part of SCA´s Tissue Roadmap and are aligned with the company’s strategy to streamline production and secure capacity for future growth to increase value creation in the Tissue business area.”
To learn more, please visit: www.sca.com (Source: SCA)
Cover Image: Inside SCA Skelmersdale Mill (courtesy SCA)