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SCA to Cut 2,200 Jobs, Close Plants in Europe

April 28, 2009 - SCA said that it has initiated an "efficiency improvement program" that is expected to reduce annual costs by SEK 1.07 billion. The program includes 2,200 job cuts, or about 14% of SCA's workforce, mainly in Europe.

Cost savings from the plan should be fully gained by the second quarter of 2010, the company said.

According to SCA, demand in Europe has fallen by 10% and the industry is struggling with high producer inventories and pressure on both liner and corrugated board prices.

The cost savings program includes:

  • Bringing forward the closure of the New Hythe mill in the UK to mid-2009
  • Closure of 11 corrugated board plants in Europe
  • Rationalization of units and workforce, in total 2,200 employees in Europe, of which 120 in Sweden, corresponds to 14% of the workforce.

In addition to the actions above, SCA said it is reducing production for linerboard amounting to 160,000 tons during the first two quarters of this year.

Some 1,000 employees were cut during the course of 2008, the company added.

SOURCE: SCA




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