STOCKHOLM, Sweden, March 25, 2002 (PRIMEZONE) -- SCA has reached an agreement, following a ruling by the bankruptcy court, to take over the French packaging company AR Fegersheim, formerly a subsidiary of A&R Carton AB. SCA is paying EUR 250,000 for the company and at the same time is assuming leasing and pension commitments with a capital value corresponding to approximately EUR 2 M. Concurrently, agreement was reached with the union organizations whereby SCA will offer about 100 persons continued employment. Previously, there were about 300 persons employed at the company.
Operations at AR Fegersheim comprise converting and printing for consumer cartonboard packaging. SCA will continue with part of these operations on the basis of long-term contracts SCA has reached with certain of the former customers of AR Fegersheim. In addition, SCA will further develop the operations based on the converting and printing of microflute products, in parallel with integration with the other packaging operations within SCA. Initially, integration will be with the operations SCA conducts within the SCA Nicollet company, which was acquired in 1998 and which focuses on packaging with demands for high-quality printing. These operations currently have annual sales of about EUR 150 M, with favorable profitability. Products are marketed in Western Europe.
The acquired operations are expected within two years to attain sales of about EUR 20 M. The acquisition strengthens SCA Nicollet's operations through being able to rapidly increase production capacity and through improved geographical coverage. SCA will take over the operations with effect from April 8, 2002.
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