BIG EXPANSION FOR SCA IN CONSUMER PRODUCTS
The Russian market for personal care products is undergoing rapid growth. Since 1995 SCA’s sales of baby diapers (Libero) and feminine care products (Libresse) have grown continuously, increasing the need for local production. Against this background, SCA has made a decision to open its own production facility in the Tula region south of Moscow to meet rising consumer demand. Rapid and strong growth is awaited for personal care products in Russia, particularly in the Moscow region where consumer buying power is on the rise. More and more families with children are using disposable diapers and the emergence of hypermarkets and superstores is increasing the availability of these products and changing consumer behaviour.

“The Russian market is extremely exciting and this venture is fully in line with SCA’s expressed ambition to expand in Eastern Europe, one of our designated growth markets,” says Jan Johansson, president and CEO of SCA. The investment is estimated at about 8million. The venture is long-term and will gradually include all product groups in SCA’s consumer portfolio for personal care - feminine care, baby diapers and incontinence care.

INCONTINENCE CARE AND TISSUE
In order to meet rising demand, SCA is investing to boost its capacity in the European incontinence care segment and the tissue segment in Latin America. SCA will also invest in an automatic sorting system at the sawmill in Tunadal.

SCA is the world-leading provider of incontinence care products. To keep pace with powerful growth in demand for heavy incontinence products, SCA is investing in a new production line for TENA Pants at the plant in Hoogezand and a new line for TENA Flex at the plant in Gennep, both in the Netherlands.

The investment in Hoogezand is primarily aimed at supporting strong growth in Europe, where sales in the Pants segment are outpacing global growth in the segment. The total investment in Hoogezand will amount to 16.7 million, and the plant is scheduled to go into operation at the end of 2009, according to the company. The investment in Gennep will amount to 19.8million and is also designed mainly to satisfy rising growth in Europe. The Flex products are sold primarily to hospitals and nursing homes and the segment is most developed in Europe, where SCA is the market-leader. The new production line will be started up in the third quarter of 2009.

NEW TM
SCA’s operations in Colombia, Ecuador, Peru and Venezuela are conducted through the 50%-owned venture capital company Productos Familia SA, which sells tissue, baby diaper, feminine care and incontinence care products. In response to a robust sales trend for tissue products, the company is now investing in a new tissue machine. SCA’s share of the investment cost is $32.5m. The investment will take place entirely within the framework of Productos Familia and will not require any new shareholder contributions.