SCA, developer and producer of tissue, publication papers, packaging solutions, personal care products and solid-wood products, has invested nearly SEK 2.6 billion in view of favorable expansion in the Russian tissue market.
SCA holds a significant position in the tissue market in Russia with brands such as Zewa and Tork. The company has planned to invest nearly SEK 1.2 billion to further strengthen its market status. The investment will be made on a second tissue production machine that has a capacity to produce 60,000 tons of tissue per year using virgin fibre. The production will start in 2013 in Sovetsk, Russia.
The company is also making an investment of about SEK 1.1 billion in a new tissue machine that will be deployed in Kostheim, Germany. SCA is making the investments to meet the increasing demand for AFH tissue products. The tissue machine has a capacity to produce 60,000 tons per year.
In addition, SCA plans to invest nearly SEK 300 million in the Bollsta sawmill located in Sweden. The investment will increase solid-wood product manufacturing capacity from 450,000 to 525,000 cubic metres annually. The production cost can also be reduced. The Sweden investment includes a saw line upgrade, improved drying capacity and two new biofuel boilers.
The investments will help SCA to increase its production capacity, competence and profitability in significant markets.