SCA continues to invest in E. Europe and China

April 27, 2007 - SCA said that is continuing its strategic investment plan in the packaging sector in Eastern Europe and China with expansion projects in two plants in Poland and one in Romania, along with two new corrugated board plants in China.

"This is totally in line with our strategy to cultivate these markets, above all in Eastern Europe and China," said SCA's CEO Jan Astrom. "The investments will enable us to meet customer demands more effectively and broaden our range of services."

The investments in Poland are being made in Poznan and Olawa with about EUR 7 million in each plant. The Poznan plant project includes a design center for printing and laminating with a focus on consumer packaging and displays. The corrugated plant in Olawa will be expanded so it can meet increasing demand in the Polish market. The projects are scheduled for completion at the end of the second quarter of 2007, SCA said.

In Timisoara in eastern Romania, SCA is investing EUR 10 million to upgrade the existing box plant to a fully integrated corrugated board plant. The plant will be ready in 2008.

SCA's packaging operations in Nanjing, China will be moved to a newly built facility close to the old one, the company said. All machinery and equipment will be transferred from the old facility. SCA said it will spend about US $12 million on the move.

And in mid-April 2007, the company inaugurated a new, US $20 million packaging plant in Suzhou (near Shanghai). The plant produces corrugated board as well as litho print and protective packaging.


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