SCA Closes Baby Diaper Business in Mexico

As part of SCA’s (STO:SCAA) (STO:SCAB) work with addressing weak market positions that have inadequate profitability, the Group has decided to close its baby diaper business in Mexico. Mexico is the Group’s eighth largest market, based on sales in 2015, and is highly prioritized by SCA. SCA holds leading market positions in feminine care, incontinence products and tissue in the country.

The total costs for the closure of the business are expected to amount to approximately SEK 170m and will be recognized as an item affecting comparability in the third quarter of 2016. Approximately SEK 20m of these costs are expected to impact cash flow.

The baby diaper business in Mexico had net sales of approximately SEK 340m in 2015.

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 www.sca.com.

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