SCA Slates SEK 800 Million for Tissue and Newsprint Machine Rebuilds

Sept. 1, 2011 - SCA announced that it will invest SEK 460 million (approx. USD 72.4 million) in a tissue machine upgrade in the U.S. In addition, SCA will spend SEK 350 million (approx. USD 55 million) to rebuild a paper machine in Ortviken, Sundsvall (Sweden) to produce improved newsprint.

SCA said the tissue machine upgrade project in the U.S. will help the company meet demand for premium products in the U.S. market. The tissue machine's curreent capacity — 70,000 tons per year — will remain unchanged.

SCA expects production to begin in late-2012 or early-2013.

In Ortviken, the rebuild project for a 245,000 tpy newsprint machine will increase the machine's capacity marginally since it is possible to produce higher density paper at the same speed. At the same time, capacity for pulp bleaching and water treatment will increase, SCA said.

Sca expects the rebuilt machine to be operational during the third quarter of 2013.