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Hygiene products marketer SCA revamps tissue division

07 Feb '17

1 min read

Swedish hygiene products marketer SCA is investing SEK 160 million in a through-air drying (TAD) machine, at its tissue plant in Skelmersdale, UK, which will help production capacity of TAD mother reels to reach 28,000 tons at the facility. SCA is doing so, to meet the growing demand for high quality tissue and strengthen product offering in the UK.

Additionally, the company has also decided to shutdown an older tissue machine in Stubbins and also signed a deal to sell its tissue plant in Chesterfield to Sidcot Group Limited. The cost for closing the Stubbins tissue machine is expected to be approximately SEK 120 million.

For the Chesterfield plant, Sidcot Group will pay approximately SEK 35 million and an impairment loss of SEK 10 million; will be recognised as an item affecting comparability in the fourth quarter of 2016.

According to SCA, these measures are part of its ‘Tissue Roadmap’ which 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. (AR)

Fibre2Fashion News Desk – India