SCA invests in Brazil

Regulatory News:

SCA (STO:SCAA)(STO:SCAB) is set to invest approximately SEK 650m in a new production facility in Brazil for the manufacture of incontinence products. Production is scheduled to commence in 2016.

Through an acquisition made in 2011, SCA established a presence in the Brazilian market for incontinence products. Since then, SCA has increased its sales and market share in Brazil. SCA is now the second largest company in the Brazilian market for incontinence products, with its global leading brand TENA and the local brand, Biofral.

Brazil, which is one of SCA’s prioritized emerging markets, is the third largest retail market in the world for incontinence products.

"This investment will increase our production capacity and improve our profitability in Brazil in the long term. The investment enables us to capitalize 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,” says Magnus Groth, President and CEO of SCA.

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.

NB: This information is such that SCA must disclose in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. Submitted for publication on July 16, 2015, at X:XX a.m./p.m. CET.

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 and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK 104bn (EUR 11.4bn). 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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