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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 optimize 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 recognized 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 leading 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 prioritized by SCA.

SCA is a leading global hygiene and forest products company that sustainably develops, produces and sells personal care, tissue and forest products. Through the recently acquired company BSN medical, the Group offers products within wound care, compression therapy and orthopedics. Sales are conducted in approximately 150 countries under many strong brands, including the leading global brands TENA and Tork, and other brands, such as Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. In 2016, the Group had approximately 46,000 employees and sales amounted to approximately SEK 117bn (EUR 12.4bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on Nasdaq Stockholm. SCA is dedicated to improving well-being through leading hygiene and health solutions. More information at www.sca.com

Tieto has signed a three-year contract with SCA, Europe's largest private forest owner, to handle SAP Application Lifecycle Management Services for its forestry business area. The deal means Tieto will be responsible for application management and support.

"We are extremely pleased that SCA Forest Products has entrusted us with the management of their extensive SAP environment. Tieto takes great pride in helping the forest industry meet the challenges brought on by digitalization and we are excited for the opportunity to work with SCA over the coming years," says Christer Lindqvist, Customer Executive for forest industry Sweden at Tieto.

Under the contract, Tieto will provide application management within five major areas, including Incident Management, Problem Management, Event Management, Change Request Management and Change Control Management.

Tieto will also support the implementation of Digital Core S/4HANA and increase the use of automatization and insights to business processes through SAP Solution Manager, while the use of offshore delivery centres is expected to help SCA cut costs. The contract also includes a framework agreement for further deals during the three-years period.

Tieto has 20 years of SAP experience and offers several specialised solutions for the forest and paper industries.  

“This deal confirms Tieto’s position as a leading partner to the forest industry in the Nordics. Our aim is to help SCA follow industry best practices and at the same time ensure business continuity and lowering application maintenance costs,” says Christer Lindqvist. 

For more information about SAP S/4HANA:  https://campaigns.tieto.com/sap-solutions/sap-transformation

About SCA
SCA is Europe’s largest private forest owner, encompassing some 2.6 million hectares of forest land, and produces forest products with a strong environmental profile. Operations are based on in-depth customer insight, high innovative ability and a sustainability perspective at all levels. SCA sells paper for packaging and print, pulp, solid-wood products and renewable energy. www.sca.com

About Tieto
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. www.tieto.com

SCA, a leading global hygiene and forest products company, has been identified as a global leader for its strategies and actions in response to climate change and has been awarded a position on the Climate A List by CDP, the international not-for-profit that drives sustainable economies.

Thousands of companies submit annual climate disclosures to CDP for independent assessment against its scoring methodology. SCA is among 9% of corporations participating to be awarded a position on the Climate A List, in recognition of its actions to reduce emissions and mitigate climate change in the past reporting year. 193 “A Listers” appear on the list, which has been produced at the request of 827 investors with assets of US$100 trillion. Fourteen Nordic companies qualified to the list, of which four are Swedish.

“We take climate change very seriously and this acknowledgement proves that our climate initiatives are best-in-class. It is gratifying that it is being noticed,” says Magnus Groth, President and CEO of SCA.

CDP’s chief executive officer Paul Simpson says: “We congratulate the 193 A List companies that are leading the charge towards our low carbon future. Companies are key actors in enabling the global economy to achieve its new climate goals, and the leadership of this group points the way for others to take bold action and capitalize on the many opportunities that await.”

The Climate A List, along with the climate scores of all companies publicly taking part in CDP’s climate change program this year, is available on CDP’s website.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

- SCA President and CEO Magnus Groth to address the power of public-private partnerships in achieving the Global Agenda and advancing hygiene awareness and standards globally

As part of its ongoing support of the United Nations Sustainable Development Goals, leading global hygiene company SCA, in partnership with the United Nations Foundation, today convenes the fourth annual Global Dialogue. The United Nations Foundation launched the Dialogue on the Global Agenda in 2012, bringing together business, government and NGO leaders to collaborate and work together to advance the UN Sustainable Development Goals.  

“On behalf of SCA, I am excited to participate in a conversation that aims to inspire new ideas and spark a global dialogue around all the 17 goals where hygiene, health and well-being play an important role,” said Magnus Groth.  “Many of the United Nations Sustainable Development Goals are closely linked with so much of our business. By working together in public private partnerships, we can create a more sustainable world and improved hygiene, health and well-being for people around the world.”

The United Nations Sustainable Development Goals were outlined and adopted in 2015 and SCA has remained committed to its role in driving progress around the Global Agenda. Last month, SCA announced the launch of its 2016-17 Hygiene Matters Report in partnership with The Water Supply and Sanitation Collaborative Council (WSSCC), a United Nations body devoted to the sanitation and hygiene needs of the most vulnerable people around the world. The Report looks at the economic and societal impact of hygiene and includes findings from a new global study to help raise awareness and encourage dialogue about the connection between hygiene, health and well-being.

The United Nations Foundation Dialogue on the Global Agenda signifies the next step in SCA’s dedication to improve well-being through leading hygiene and health solutions, and serves as an example of how public-private partnerships can facilitate meaningful change in communities around the world.

Groth will open the Global Dialogue by sharing insights around SCA’s commitment to hygiene and how economic, environmental and social performance must become the standard for all corporate behavior throughout the private sector. Global Dialogue participants will then engage in discussions on ways the public and private sectors can inspire decision-makers and thought leaders to advocate for the Sustainable Development Goals in business, policy and society.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

To further improve efficiency and strengthen the competitiveness of its tissue operations, SCA has decided to implement restructuring measures at its production plants in Hondouville and Saint-Etienne-du-Rouvray, France. The restructuring measures are aligned with the company’s strategy to improve production efficiency in order to drive cost and capital efficiency and further increase value creation in the Tissue business area.

The restructuring measures include the closure of the oldest tissue machine in Hondouville and personnel reductions at Hondouville and Saint-Etienne-du-Rouvray. In Hondouville, where SCA manufactures Away-from-Home tissue, production will be concentrated to more efficient machines, thus enabling production levels to be maintained. In Saint-Etienne-du-Rouvray, SCA has decided to divest production of tabletop products for consumers to focus on the plant’s core operation: kitchen roll and toilet paper production. The measures will lead to lower production costs and increased competitiveness.

Total costs are expected to amount to approximately SEK 500m, of which about SEK 470m will be recognized as an item affecting comparability in the third quarter of 2016. The remaining costs will be recognized as an item affecting comparability in the fourth quarter of 2016. Of these costs, approximately SEK 340m is expected to affect cash flow.

France is a prioritized market for SCA and is the company’s fourth-largest market based on sales in 2015.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

As communicated in an earlier press release, the SCA Board of Directors plans to initiate work in order to propose to the Annual General Meeting 2017 to decide on a split of the Group into two listed companies in order to create further value for the shareholders.

This is planned to be completed through a distribution of the Group’s hygiene business to its shareholders whereby SCA’s shareholders will, in addition to their current shareholding, also receive shares in the new listed hygiene company.

In order to avoid any potential uncertainties, SCA wishes to underline the fact that no decision has been made on how to handle creditors, future capital structure, allocation of debt, etc. in relation to the contemplated separation.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

SCA will integrate its Business Unit MEIA (Middle East, India and Africa) into Business Unit Consumer Goods to leverage our scale and capabilities and to further increase efficiency. Combining these organizations will help to capture synergies and facilitate best practice sharing within the consumer business.

“This integration provides us with the scale to stay competitive in a region to which we are committed and creates a strong foundation for future profitable growth” commented Magnus Groth, CEO and President of SCA.

Volker Zöller, President, SCA Consumer Goods explained: “We aspire to implement the relevant parts of our successful European Go-To-Market program in MEIA and to leverage innovation on a broader scale”.

The integration will be effective as of November 1, 2016.

Business Unit MEIA offers Personal Care products and Tissue in the regions Middle East, India and Africa. The business unit accounted for 2% of the Group’s net sales for the first quarter of 2016. Business unit Consumer Goods, which offers consumer goods in Europe, accounted for 30% during the same period.

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

SCA is a leading global hygiene and forest products company. Today about 85% of the Group sales derives from the hygiene business and about 15% from the forest products business. To create further value for the shareholders, the SCA Board of Directors plans to initiate work in order to propose to the Annual General Meeting 2017 to decide on a split of the Group into two listed companies. This is planned to be completed through a distribution of the Group’s hygiene business to its shareholders in accordance with the rules of Lex Asea*. In the event of a distribution of the hygiene business, SCA’s shareholders will, in addition to their current shareholding, also receive shares in the new listed hygiene company.

In August 2015, SCA announced that, in order to further develop the Group’s two operations, SCA had decided to initiate a dividing of the Group into two divisions: a hygiene division and a forest products division. 

“For the Annual General Meeting 2017, the Board of Directors plans to present a proposal for the distribution and listing of the company's hygiene business”, says Pär Boman, Chairman of the Board of Directors of SCA.

“Our hygiene and forest products businesses are two strong operations with attractive offerings in their respective industries. After a thorough analysis, our conclusion is that a split of SCA into two listed companies is the best way to continue to create shareholder value, customer benefits and further development opportunities”, says Magnus Groth, President and CEO of SCA.

An evaluation, mainly based on value creation and flexibility for the shareholders, has been made of various methods and structural alternatives to achieve a complete split of the two businesses into two independent companies. The conclusion is that a distribution and listing of SCA's hygiene business will create more shareholder value and incur relatively low transactional risk and relatively low transaction costs.

“It is the Board of Directors´ opinion that the proposal to split the hygiene and forest products businesses into two listed companies increases the ability for each business to successfully realize its strategies and increase value for SCA's shareholders. It is also pleasing that the main shareholders will support the proposal at the Annual General Meeting”, says Pär Boman Chairman of the Board of Directors of SCA.

“As a long-term asset manager and active owner in SCA we share the company’s opinion that a dividing of the business creates value over time. It is a natural step in the successful streamlining towards the hygiene business and the forest products business conducted over several years, says Helena Stjernholm”, CEO, Industrivärden.

Prior to the Annual General Meeting 2017, the Board of Directors plans to present a proposal for the distribution and listing of the Group's hygiene business. The distribution is proposed to be made to the shareholders in proportion to their holdings of SCA's Class A and Class B shares. The distribution is expected to meet the requirements of Lex Asea. If the shareholders decide in favor of the proposal, the plan is to distribute and list the new hygiene company on Nasdaq Stockholm during the second half of 2017. Following a split, there will be two listed companies. One will be a hygiene company including SCA's current business areas Personal Care and Tissue. The second, a forest products company including all forest products operations and all the forest land owned by the SCA Group.

“SCA's leading global hygiene business offers products that make life easier every day for millions of people around the world. An increasing awareness of the relationship between hygiene and health, combined with a growing and aging population, are creating greater demand for hygiene products. Furthermore, SCA is Europe's largest private forest owner and the well-integrated supply chain, with production facilities concentrated in Sweden in close proximity to its forest holdings, offers significant synergies and competitive advantages. Forest Products is an efficient and well-invested business. Our investment in increased pulp capacity in the Östrand mill, one of the largest industrial investments in Sweden, will further strengthen our long-term competitiveness”, says Magnus Groth, President and CEO of SCA.

Effective immediately, SCA's Directors appointed by shareholders and CEO, Magnus Groth, have, in addition to current assignments also been appointed the Board of Directors and CEO of the parent company for the hygiene business. The intention is to appoint Ulf Larsson, current President of SCA Forest Products and a member of the Executive Management Team, CEO of the listed forest products company after the distribution of the hygiene business.

Effective immediately, the Board of Directors has also appointed Ulf Larsson, in addition to current assignments, Executive Vice President of SCA.

The intention is that the new listed hygiene company receives a new name and is registered in Stockholm and the forest products company keeps the name SCA and is registered in Sundsvall.

Conference call

A conference call, held in English, for media, analysts and investors will be held today at 09:30 CET by Magnus Groth, President and CEO of SCA. The conference call will be live webcasted at www.sca.com. You can also participate by telephone, call: +1 646 934 6795, +44 (0)207 1620 177 or +46 (0)8 5052 0114. Specify "SCA" or conference id 959885. Please call in good time before the conference starts.

Facts SCAs businesses 2015

*Lex Asea is a tax regulation in Sweden. This provision means that if a parent company distributes shares in a wholly owned subsidiary to its shareholders, then the taxation of the capital gain the shareholders may enjoy in connection to the distribution under certain circumstances be postponed until the time when the shareholder in turn sells the received shares.

NB: This information is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation or the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on August 24, 2016.

Effective immediately, SCA’s Board of Directors has appointed Ulf Larsson, current President of SCA Forest Products and a member of the Executive Management Team, Executive Vice President of SCA. This is in addition to his current assignments.

Ulf Larsson started at SCA in 1992. Ulf has a BSc Forestry, Swedish University of Agricultural Sciences, Umeå, Sweden. He has held several leading positions within SCA Forest Products.

NB: This information is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation or the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on August 24, 2016.
Karl Stoltz, Media Relations Manager, +46 8 788 51 55

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.

SCA will close its tissue production plant in Sant Joan de Mediona, Spain. The decision is aligned with the company’s strategy to optimize its geographic production footprint in order to drive cost and capital efficiency and further increase value creation in Tissue. SCA remains fully committed to the Spanish market, which is the Group’s sixth largest market based on sales in 2015.

The production plant has an annual capacity of 45,000 tons. Production will be discontinued in July 2016.

The restructuring costs for the closure of the production plant are expected to amount to approximately SEK 230m and will be recognized as an item affecting comparability in the second quarter of 2016. Of the restructuring costs, approximately SEK 140m is expected to be recognized as an impairment loss.

For additional information please contact:
Johan Karlsson, Vice President Investor Relations, 46 8 788 51 30
Karl Stoltz, Media Relations Manager, 46 8 788 51 55

SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.