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SCA: SCA continues to improve efficiency of tissue production in Europe

To further improve efficiency and strengthen the competitiveness of
its tissue operations, SCA has decided to implement restructuring
measures at its production plants in Hondouville and
Saint-Etienne-du-Rouvray, France. The restructuring measures are
aligned with the company's strategy to improve production efficiency
in order to drive cost and capital efficiency and further increase
value creation in the Tissue business area.

The restructuring measures include the closure of the oldest tissue
machine in Hondouville and personnel reductions at Hondouville and
Saint-Etienne-du-Rouvray. In Hondouville, where SCA manufactures
Away-from-Home tissue, production will be concentrated to more
efficient machines, thus enabling production levels to be maintained.
In Saint-Etienne-du-Rouvray, SCA has decided to divest production of
tabletop products for consumers to focus on the plant's core
operation: kitchen roll and toilet paper production. The measures
will lead to lower production costs and increased competitiveness.

Total costs are expected to amount to approximately SEK 500m, of which
about SEK 470m will be recognized as an item affecting comparability
in the third quarter of 2016. The remaining costs will be recognized
as an item affecting comparability in the fourth quarter of 2016. Of
these costs, approximately SEK 340m is expected to affect cash flow.

France is a prioritized market for SCA and is the company's
fourth-largest market based on sales in 2015.

For additional information please contact:
Henrik Sjöström, Media Relations Manager, +46 (0)8 - 788 51 36
Johan Karlsson, Vice President Investor Relations, +46 (0)8 - 788 51

SCA is a leading global hygiene and forest products company. The Group
develops and produces sustainable personal care, tissue and forest
products. Sales are conducted in about 100 countries under many
strong brands, including the leading global brands TENA and Tork, and
regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba,
Tempo, Vinda and Zewa. As Europe's largest private forest owner, SCA
places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2015 amounted to
approximately SEK 115bn (EUR 12.3bn). SCA was founded in 1929, has
its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX
Stockholm. For more information, visit


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