STOCKHOLM, Aug. 26, 2020 /PRNewswire/ — SCA intends to speculate SEK 1,45bn within the manufacturing of chemically pre-treated thermo-mechanical pulp (CTMP) on the Ortviken paper mill in Sundsvall. In parallel, SCA is initiating consultations with commerce unions and worker representatives to discontinue the manufacturing of publication paper on the mill.
SCA intends to speculate to attain an annual manufacturing quantity of 300,000 tonnes of CTMP pulp at Ortviken, utilizing the present infrastructure. The funding is predicted to present a constructive EBITDA-effect of roughly SEK 0.3bn each year. Anticipated begin of manufacturing within the new mill is the start of 2023. SCA as we speak has a manufacturing capability of 100,000 tonnes of CTMP pulp on the Östrand pulp mill. This manufacturing will probably be phased out when the brand new line begins up, which is able to permit a future enhance within the manufacturing of kraft pulp at Östrand Pulp mill.
“Our pulp prospects need us to develop with them in product segments corresponding to packaging board and hygiene merchandise, segments with wholesome development,” says Ulf Larsson, SCA’s CEO. “According to our technique, we’ve got regularly diminished our publicity to publication paper. We now provoke negotiations to go away this product phase fully.”
At present, SCA produces coated and uncoated publication paper on three paper machines at Ortviken paper mill with annual gross sales of roughly SEK 4bn. Demand for publication paper in Western Europe has declined by roughly 5% per yr since 2008. Through the coronavirus pandemic, demand for publication paper decreased by an extra 30-40% and manufacturing at Ortviken paper mill has been tailored to the weak order stage. This low demand, mixed with a weak value improvement, ends in a adverse profitability for the operation.
The closure of publication paper manufacturing at Ortviken paper mill proposed by SCA will have an effect on about 800 workers, primarily at Ortviken paper mill, but in addition in different elements of SCA’s operations. The closure would lead to non-recurrent prices with cashflow results that are estimated to not exceed SEK 0.9bn and an impairment of about SEK 1.1bn.
“By as we speak’s proposals, we intend to proceed to develop a robust, sustainable and worthwhile business primarily based on our renewable forest uncooked supplies”, says Ulf Larsson. “This may have a major impression on many individuals and we are going to in a accountable approach search the very best options for these affected.”
Negotiations underneath the Co-determination at Work Act (MBL) with commerce unions will now start relating to the plans to discontinue paper manufacturing at Ortviken paper mill, the funding in CTMP manufacturing at Ortviken and the impression on different SCA operations. In different jurisdictions affexcted workers and their representatives will probably be knowledgeable and consulted consistent with the authorized framework.
INVITATION TO PRESS CONFERENCE
The press convention will be adopted by way of webcast or phone. The President and CEO, Ulf Larsson, and CFO, Toby Lawton, will current the background to the meant funding and the proposal to discontinue publication paper manufacturing, and reply any questions.
Time: Wednesday August 26, 2020, at 10:00 a.m.
The press convention will probably be webcast reside at www.sca.com. Additionally it is attainable to take part by phone by calling:
Sweden: +46 (0)8 5069 2180
UK: +44 (0)2071 928000
US: +1 631 510 7495
State “SCA” or the convention ID: 1249139.
For additional info, please contact
Björn Lyngfelt; SVP Communications. +46 (0)60 19 34 98
That is info that SCA is obliged to make public pursuant to the EU Market Abuse Regulation. The knowledge was submitted for publication, by way of the company of the contact individual set out beneath, on August 26, 2020 at 08:00 a.m. CET.
Björn Lyngfelt, Vice President, Communications, +46 (0)60 19 34 98
The core of SCA’s enterprise is the forest, Europe’s largest non-public forest holding. Round this distinctive useful resource, we’ve got constructed a well-developed worth chain primarily based on renewable uncooked materials from our personal and others’ forests.
We provide paper for packaging and print, pulp, wooden merchandise, renewable vitality, companies for forest house owners and environment friendly transport options.
In 2019, the forest merchandise firm SCA had roughly 4,000 workers and gross sales amounted to roughly SEK 19.6bn (EUR 1.9bn).