SCA Launches Efficiency Program at Forest Products

  SCA Launches Efficiency Program at Forest Products

Business Wire

STOCKHOLM -- December 19, 2012

Regulatory News:

Against the backdrop of the prevailing economic and currency situation, SCA
(STO:SCAA)(STO:SCAB) is introducing a comprehensive program to enhance the
efficiency of its forest products operation. The program will generate annual
earnings improvements of SEK 1,300m with full effect from 2015.

The total cost of the program is SEK 370m, of which SEK 250m is cash flow
impacting and SEK 120m comprises impairment losses. Of the total costs, SEK
175m will be charged to profit for the fourth quarter and will be recognized
as items affecting comparability. The remaining SEK 195m will be charged to
profit for the first six months of 2013.

Actions include the previously announced closures of the sawmills in
Vilhelmina and Holmsund, and cutbacks at Ortviken paper mill, SCA
Transforest’s terminals in Sundsvall and Umeå, and at SCA’s R&D Center. About
200 positions are affected, the majority of which have already been announced.

The program includes a structured plan to reduce fixed and variable costs,
income improvements by way of increased production and streamlining
activities, and a changed product and market mix. This will be achieved
through improved raw material yield at the sawmills, higher productivity in
harvesting activities, an increased share of value-added publication papers
and a larger share of container transportation.

Stockholm, December 19, 2012

SCA is a leading global hygiene andforest company that develops and produces
personal care products, tissue and forest products. Sales are conducted in
some 100 countries. SCA has many well-known brands, including the global
brands TENA and Tork. Salesin 2011 amounted to SEK106 billion (EUR11.7
billion). SCA has approximately 37,000 employees. More information at
www.sca.com

NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on December 19, 2012, at 08.00 CET.

This information was brought to you by Cision http://www.cisionwire.com

Contact:

SCA
Jessica Ölvestad
Press and Media Officer
+46 8 788 52 82
or
Louise Tjeder
Director Investor Relations
+46 8 788 51 62
 
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