SCA Forest Products to Cut 55 Employees in Sweden

SCA Forest Products will eliminate 45 jobs at its Ortviken paper mill in in Sundsvall, Sweden.

Dec. 5, 2012 - SCA said that within its Forest Products segment it intends to reduce staff at its Ortviken paper mill in Sundsvall, Sweden by 45 employees and about 10 additional employees in its Transforest’s terminals in Sundsvall and Umea

"We have a weak market for publication papers and at the same time overcapacity among paper producers in Western Europe and North America,” explained Kristina Enander, mill manager at the Ortviken paper mill. "At the same time we have a strong Swedish krona, which puts even more pressure on profitability for the Swedish export industry. It is necessary for us to take measures to improve profitability.”

The Ortviken paper mill produces coated publication papers, LWC (lightweight coated) and newsprint on four paper machines and has an annual production capacity of 880,000 tons of paper.

SCA said 45 out of 800 of the Ortviken paper mill's extra staff and consultants will become redundant due to the cost cutting measures.

“We will reduce staff both among blue collar and white collar employees,” Enander said. “We will reduce the minimum manning of the mill and we will look through all processes and operations.”

In SCA's Transforest unit, which has about 200 employees, 10 positions will be eliminated due to redundancy.

“The weak business cycle and our customers’ difficult situation make it necessary for us to reduce the costs for transport and logistics,” noted Magnus Svensson, President of SCA Transforest. "In our terminal in Umea, volumes are decreasing due to the closures of the sawmills in Vilhelmina and Holmsund.”

SCA's operations in the Sundsvall region of Sweden is managed by the SCA Forest Products business unit, which produces publication papers (newsprint, LWC and SC paper), pulp, solid-wood products and renewable energy. SCA Forest Products is also responsible for the forest management, wood procurement and for parts of the Group's transport and logistics.