SCA is set to invest SEK 650m in a new production facility in Brazil for the manufacture of incontinence products.
The company is now the second largest in the Brazilian incontinence marketplace with its global brand TENA and local brand Biofral following an acquisition in 2011.
Production at the new facility is scheduled to commence in 2016.
Brazil is one of SCA’s prioritised emerging markets and is the third largest retail market in the world for incontinence products.
Magnus Groth, president and chief executive of SCA, said: “This investment will increase our production capacity and improve our profitability in Brazil in the long term.
“It enables us to capitalise on the growth opportunities that we can see in the Brazilian market for incontinence products and to potentially launch other product categories in the future.”
The new production facility in Jarinu, Brazil, will replace the smaller existing plant.
In 2014, SCA’s net sales in Brazil amounted to SEK 514m.