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SCA to Build $240 Million Tissue Mill in Mexico

Sept. 5, 2008 - SCA said that it will invest US $240 million (SEK 1,525 billion) to build a new tissue mill in Mexico.

The first phase of the project includes the installation of a tissue machine that will be designed to produce 60,000 tons per year of dry crepe. The project also includes a recycled fiber plant, a converting hall with three lines for toilet paper as well as a distribution center.

"This is a strategically important investment. The plant, which will be located near the key markets in and around Mexico City, will be integrated and highly efficient,” said SCA’s president and CEO Jan Johansson. “It will provide us the opportunity to enhance product quality and thereby improve our profitability and our offering to consumers.”

Currently, SCA’s sales of hygiene products in Mexico and Central America total US $458 million (SEK 2,910 million) of which about two thirds is attributable to tissue. The company said it is the second largest producer in the region, holding 18% of the market.

“Market growth in Mexico has been 4-5% annually during the past five years and our assessment is that the market will grow approximately the same in the immediate years ahead,” Johansson said.

Start-up of the new tissue plant is expected at the end of 2010.

SOURCE: SCA




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