SCA to Increase Tissue Capacity in Russia, Germany with Two New Machines

April 29, 2011 - SCA said that it plans to expand tissue capacity in Russia and Germany, and increase capacity of solid-wood products in Sweden.

The investments in the expansion projects will total approximately SEK 2.6 billion (approx. EUR 290 million), SCA said.

The company said that there is favorable growth in the Russian tissue market and it will invest about SEK 1.2 billion (approx. EUR 130 million) in a second tissue machine in Sovetsk. The new tissue machine will have the capacity to produce 60,000 tons per year, with production based on virgin fiber. Start up is expected in 2013.

SCA will also spend about SEK 1.1 billion (approx. EUR 120 million) for a new tissue machine in Kostheim, Germany. "This investment is being made to meet increased demand, primarily for AFH tissue products," SCA said in a written statement. The new tissue machine will have a capacity of 60,000 tpy and is scheduled to start up in 2013.

As for solid-wood products, SCA will invest SEK 300 million (approx. EUR 30 million) in the Bollsta sawmill, Sweden to increase production capacity and reduce costs. The scope of the project includes two new biofuel boilers, increased drying capacity, and an upgrade of the mill's saw line.

SCA said production capacity at the sawmill will increase from 450,000 cubic metres to 525,000 cubic metres of sawn pine products per year.

In addition, the project will allow energy production exclusively from the companys own biofuel, which in turn will phase out a large amount of oil usage. The biofuel boiler is scheduled for commissioning at the end of 2012, while other parts will be successively commissioned during 2012 and 2013, SCA said.

SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions, publication papers and solid-wood products.